Asia Cassava Resources Holdings Limited (0841) AI Stock Analysis

• Market Cap: HK$59.64M
• Dividend Yield: N/A
• Average Volume (3M): 108.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -71.04%
• EPS Growth: -21.75%
• Country: HK
• Employees: 240
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 584,726,750
• 10 Day Avg. Volume: 177,800
• 30 Day Avg. Volume: 108,533
• PEG Ratio: 0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ―

Asia Cassava Resources Holdings Limited has a challenging financial position with declining revenues and high leverage, which significantly impacts its stock score. Technical indicators suggest a bearish trend, and its valuation is unattractive due to negative earnings and no dividends. The reduction in net debt and positive free cash flow are minor positives, but the overall outlook remains cautious.

Asia Cassava Resources Holdings Limited Business Overview & Revenue Model

Company Description

Asia Cassava Resources Holdings Limited (0841) is a Hong Kong-based investment holding company primarily engaged in the processing and trade of cassava. The company is involved in the sourcing, transportation, storage, and distribution of dried cassava chips, which are utilized in various industries, including ethanol production, animal feed, and food processing. Through its subsidiaries, Asia Cassava Resources operates across several countries in Asia to meet the demand for cassava products.

How the Company Makes Money

Asia Cassava Resources Holdings Limited generates revenue primarily through the sale of dried cassava chips. The company sources raw cassava from farmers and processes it into dried chips, which are then sold to various industrial customers, including ethanol producers, animal feed manufacturers, and food processing companies. The company benefits from an extensive logistics network that facilitates the efficient transportation and distribution of its products across Asia. By maintaining strong relationships with both suppliers and customers, Asia Cassava Resources ensures a steady supply of raw materials and a consistent demand for its products. The company may also engage in partnerships or joint ventures to enhance its market reach and operational efficiency, contributing to its overall earnings.

Asia Cassava Resources Holdings Limited Financial Statement Overview

Summary

Asia Cassava Resources Holdings Limited faces significant financial challenges, with declining revenues and profitability impacting its overall financial health. The high leverage and low equity ratio pose risks, but the reduction in net debt and positive free cash flow offer some optimism. The company needs to focus on stabilizing its revenues and managing its debt to improve its financial position.

Income Statement

The company has experienced a significant decline in revenue and profitability over the past year. Total revenue dropped from 3,969,276,000 to 1,193,032,000, indicating a severe contraction in sales. Gross profit margin has decreased, and the company recorded negative EBIT and EBITDA, reflecting operational challenges. The net profit margin is also negative, highlighting the company's struggle to generate profits.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage. The equity ratio is relatively low, suggesting limited asset backing by equity. However, the company has managed to reduce its net debt position compared to previous years, which is a positive sign of improving financial health.

Cash Flow

The cash flow statement shows a decline in operating cash flow compared to the previous year, though the company still maintains positive free cash flow. The positive free cash flow to net income ratio is a positive indicator, but the overall cash flow situation remains tight due to reduced operating cash inflows.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
785.96M	1.19B	3.97B	3.59B	2.72B	1.42B
	Gross Profit
105.21M	152.04M	450.69M	437.90M	264.64M	159.50M
	EBIT
-97.69M	-62.03M	15.00M	73.91M	49.06M	6.96M
	EBITDA
-121.38M	-83.33M	-61.22M	90.39M	-32.87M	-35.72M
	Net Income Common Stockholders
-136.80M	-111.36M	-94.71M	44.97M	-7.13M	-34.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.56M	53.56M	271.52M	109.50M	74.00M	211.55M
	Total Assets
1.47B	1.47B	2.04B	2.92B	2.67B	2.35B
	Total Debt
571.90M	571.90M	961.29M	1.69B	1.46B	1.15B
	Net Debt
522.48M	522.48M	697.12M	1.59B	1.39B	950.42M
	Total Liabilities
983.59M	983.59M	1.38B	2.09B	1.87B	1.51B
	Stockholders Equity
610.74M	610.74M	751.68M	872.16M	829.56M	833.58M
Cash Flow		Free Cash Flow
101.00M	248.94M	669.97M	-157.45M	-229.31M	-58.69M
	Operating Cash Flow
105.83M	251.04M	675.55M	-153.37M	-225.95M	-55.45M
	Investing Cash Flow
-57.10M	-55.52M	-4.32M	-2.90M	3.24M	23.89M
	Financing Cash Flow
-23.07M	-408.19M	-506.49M	191.36M	94.67M	88.30M

Asia Cassava Resources Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0841, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.77 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0841.

Asia Cassava Resources Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1066	77 Outperform	$26.46B	11.85	8.95%	4.50%	-3.09%	0.67%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
0841	48 Neutral	HK$59.64M	―	-20.14%	―	-71.04%	-21.75%
0060	43 Neutral	HK$113.27M	―	-3.39%	―	-12.19%	-18.39%
0488	43 Neutral	HK$770.26M	―	-7.26%	―	2.20%	43.92%
0712	28 Underperform	€77.37M	―		―	12.64%	-178.48%

Asia Cassava Resources Holdings Limited Corporate Events

Asia Cassava Resources Announces Change of Hong Kong Office Address

Asia Cassava Resources Holdings Limited has announced a change in the address of its head office and principal place of business in Hong Kong. This relocation to Unit 1109, 11/F., Houston Centre, Kowloon, is effective from January 20, 2025, and is a strategic move for the company as it continues to enhance its operational efficiency.