Asia Cassava Resources Holdings Limited (0841) AI Stock Analysis

• Market Cap: HK$62.57M
• Dividend Yield: N/A
• Average Volume (3M): 261.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -18.03%
• EPS Growth: -17.44%
• Country: HK
• Employees: 240
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): -0.21
• Shares Outstanding: 584,726,750
• 10 Day Avg. Volume: 578,000
• 30 Day Avg. Volume: 261,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall score is primarily impacted by the company's weak financial performance, characterized by high leverage and negative profitability. While technical analysis indicates strong market momentum, the negative valuation metrics further weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for cassava products, supporting long-term business expansion.

Product Diversification

Diverse product offerings across multiple markets reduce dependency on a single revenue stream, enhancing business resilience.

Market Position

Leading position in the cassava market provides competitive advantages and opportunities for strategic partnerships and growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues may hinder the company's ability to reinvest in operations and sustain long-term growth.

Weak Cash Flow

Poor cash flow generation limits the company's capacity to fund operations and strategic initiatives, affecting financial stability.

Asia Cassava Resources Holdings Limited Business Overview & Revenue Model

Company Description

Asia Cassava Resources Holdings Limited, an investment holding company, procures, processes, warehouses, and sells dried cassava chips in Mainland China, Hong Kong, and Thailand. It operates through three segments: Procurement and Sale of Dried Cassava Chips; Property Investment; and Hotel And Serviced Apartment Operations. The company also invests in office spaces and industrial properties; holds trademarks; collects debts; operates services apartments; and provides shipping agency services. In addition, it engages in the operation of a hotel, restaurant, and ancillary entertainment facilities; and trading and tendering of dried cassava chips. The company was founded in 1984 and is headquartered in Tsim Sha Tsui East, Hong Kong. Asia Cassava Resources Holdings Limited is a subsidiary of Art Rich Management Limited.

How the Company Makes Money

Asia Cassava Resources generates revenue through multiple streams, primarily from the sale of processed cassava products, including starch, flour, and other derivatives. The company capitalizes on both wholesale and retail markets, reaching food manufacturers, distributors, and end consumers. Additionally, the company may engage in strategic partnerships with agricultural producers and processing facilities to expand its supply chain and enhance production capabilities. Fluctuations in global commodity prices and demand for cassava-based products can significantly influence the company's earnings, making market access and export opportunities critical components of its revenue model.

Asia Cassava Resources Holdings Limited Financial Statement Overview

Summary

The company shows strong revenue growth but faces significant challenges in profitability and cash flow generation. High leverage and negative returns on equity highlight financial risks. Improving operational efficiency and reducing debt are crucial for enhancing financial health.

Income Statement

The company has experienced significant revenue growth in the most recent year, with a 24.42% increase. However, profitability remains a concern, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also declined compared to previous years, suggesting challenges in maintaining cost efficiency.

Balance Sheet

The company is highly leveraged, with a debt-to-equity ratio of 1.74, which poses a risk in terms of financial stability. The equity ratio is relatively low, indicating a heavy reliance on debt financing. Return on equity is negative, reflecting ongoing profitability challenges.

Cash Flow

Cash flow performance is weak, with negative operating and free cash flows. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a positive indicator. The company needs to improve its cash generation capabilities to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	785.96M	977.90M	1.19B	3.97B	3.59B	2.72B
Gross Profit	105.21M	81.15M	152.04M	450.69M	437.90M	264.64M
EBITDA	-121.38M	-97.21M	-83.33M	-61.22M	90.39M	-32.87M
Net Income	-136.80M	-130.72M	-111.36M	-94.71M	44.97M	-7.13M
Balance Sheet
Total Assets	1.27B	1.70B	1.47B	2.04B	2.92B	2.67B
Cash, Cash Equivalents and Short-Term Investments	121.85M	63.65M	53.56M	271.52M	109.50M	74.00M
Total Debt	690.27M	879.44M	571.90M	961.29M	1.69B	1.46B
Total Liabilities	810.85M	1.35B	983.59M	1.38B	2.09B	1.87B
Stockholders Equity	598.24M	504.57M	610.74M	751.68M	872.16M	829.56M
Cash Flow
Free Cash Flow	101.00M	-240.09M	248.94M	669.97M	-157.45M	-229.31M
Operating Cash Flow	105.83M	-204.29M	251.04M	675.55M	-153.37M	-225.95M
Investing Cash Flow	-57.10M	-79.31M	-55.52M	-4.32M	-2.90M	3.24M
Financing Cash Flow	-23.07M	289.85M	-408.19M	-506.49M	191.36M	94.67M

Asia Cassava Resources Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 0.13 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.12 is Neutral, neither overbought nor oversold. The STOCH value of 68.74 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
1767	70 Outperform	HK$310.00M	11.74	5.48%	0.74%	5.43%	-25.42%
3838	65 Neutral	HK$1.23B	2.71	10.38%	4.80%	-6.58%	16.23%
1695	63 Neutral	HK$101.52M	4.08	11.24%	―	37.73%	150.54%
Sector *	61 Neutral	$10.29B	7.21	-0.06%	2.89%	2.87%	-36.73%
0841	48 Neutral	HK$62.57M	―	-23.44%	―	-18.03%	-17.44%
3GS	―	€19.92M	1.67		―	―	―
0809	44 Neutral	HK$855.11M	1.06		―	42.14%	-81.22%

Asia Cassava Resources Holdings Limited Corporate Events

Asia Cassava Resources Announces AGM and Share Issuance Proposal

Asia Cassava Resources Holdings Limited has announced its upcoming Annual General Meeting, scheduled for September 26, 2025, in Hong Kong. Key agenda items include the approval of the company’s financial statements, reappointment of auditors, and re-election of directors. Additionally, the company seeks shareholder approval to authorize the board to issue new shares, potentially expanding its capital by up to 20%. This move could enhance the company’s financial flexibility and support future growth initiatives.

Asia Cassava Reports Revenue Decline and Increased Losses for 2025

Asia Cassava Resources Holdings Limited reported a decrease in revenue to approximately HK$977.9 million for the year ended March 31, 2025, compared to HK$1,193.0 million in 2024. The company also experienced a loss attributable to its owners of about HK$130.7 million, up from HK$111.4 million the previous year. The financial results were impacted by fair value changes in investment properties, impairments of property, plant, and equipment, and right-of-use assets. Consequently, the Board of Directors decided not to recommend a final dividend for the year, reflecting the company’s challenging financial position.

Asia Cassava Resources to Announce Annual Results on June 30, 2025

Asia Cassava Resources Holdings Limited has announced that its board of directors will meet on June 30, 2025, to approve the annual results for the fiscal year ending March 31, 2025, and to discuss other business matters. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction.