Asia Cassava Resources Holdings Limited (0841) AI Stock Analysis

• Market Cap: HK$109.93M
• Dividend Yield: N/A
• Average Volume (3M): 233.67K
• Price to Earnings (P/E): 1.7
• Beta (1Y): 1.41
• Revenue Growth: 75.21%
• EPS Growth: 18.42%
• Country: HK
• Employees: 240
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 584,726,750
• 10 Day Avg. Volume: 332,200
• 30 Day Avg. Volume: 233,666
• PEG Ratio: -0.03
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.26
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.19 ▼(-25.60% Downside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is primarily held back by weak financial performance—ongoing losses, negative operating/free cash flow, and high leverage—despite strong recent revenue growth. Technicals are mixed with modestly positive longer-term trend support but soft near-term positioning, while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained revenue growth of ~24% reflects expanding sales volumes and market penetration in cassava products. For a volume-driven trading business this supports scale economies, better fixed-cost absorption and the potential to improve margins if procurement and logistics are optimized.

Commodity trading/distribution model

A focused trading and distribution model targeting industrial end-users is structurally durable: low product obsolescence, repeat demand, and clear levers (procurement, logistics, working-capital) to improve spreads. Operational improvements can scale profitably over time.

Stable end-market exposure

Exposure to packaged foods and industrial food ingredients is a defensive structural trend: cassava starch is a staple input with steady industrial demand. This end-market stability supports recurring revenue and mitigates demand cyclicality versus discretionary consumer categories.

Negative Factors

Weak cash generation

Negative operating and free cash flows are a durable concern for a trading business that depends on working-capital cycles. Persistent cash outflows constrain reinvestment in procurement capacity and logistics, and force reliance on external financing to fund day-to-day operations.

High leverage

A debt-to-equity ratio of 1.74 indicates heavy reliance on debt financing. In a commodity trading business with negative cash generation, elevated leverage raises refinancing and interest-servicing risk and reduces financial flexibility to absorb price or cost shocks.

Profitability pressure and margin decline

Declining gross margins and negative operating profits signal structural pressure on the spread between purchase and selling prices or rising costs. For a spread-driven distributor, persistent margin erosion undermines sustainability even if revenue grows, limiting free cash flow recovery.

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 Holdings Limited generates revenue primarily through the sale of cassava-based products, including cassava chips and cassava starch. The company’s revenue model is centered around bulk sales to food manufacturers, animal feed producers, and biofuel companies. Key revenue streams include direct sales contracts with large industrial clients and export sales to international markets. Additionally, strategic partnerships with agricultural cooperatives and processing facilities enhance the company’s production capabilities and market reach, thereby contributing to its overall earnings. The company's focus on sustainable and efficient production methods also helps in maintaining cost-effectiveness and competitiveness in the market.

Asia Cassava Resources Holdings Limited Financial Statement Overview

Summary

Despite strong revenue growth (+24.42%), the company shows persistent profitability pressure (negative net profit and EBIT margins), weak liquidity generation (negative operating and free cash flows), and elevated financial risk from high leverage (debt-to-equity 1.74) with negative ROE.

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

Asia Cassava Resources Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 0.25 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.22, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	HK$375.00M	12.59	5.48%	0.78%	5.43%	-25.42%
3838	63 Neutral	HK$1.05B	1.71	10.38%	5.38%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1695	60 Neutral	HK$108.00M	1.61	11.07%	―	37.73%	150.54%
0841	43 Neutral	HK$109.93M	1.70	-20.08%	―	75.21%	18.42%
0809	42 Neutral	HK$1.02B	-1.31	-37.13%	―	42.14%	-81.25%
3889	40 Underperform	HK$166.10M	-0.77	―	―	-6.04%	-340.00%