Asia Cassava Resources Holdings Limited (0841) AI Stock Analysis

• Market Cap: HK$101.74M
• Dividend Yield: N/A
• Average Volume (3M): 233.67K
• Price to Earnings (P/E): 1.7
• Beta (1Y): 1.45
• 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$0.17 ▼(-31.20% 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

Strong Revenue Growth

Sustained double-digit revenue growth (24.4% y/y) reflects expanding volumes and customer traction in the cassava supply chain. Over the next 2–6 months, higher scale can improve procurement leverage and utilization of logistics capacity, supporting steadier top-line and potential margin recovery.

Commodity Trading/Distribution Model

The core trading/distribution model focuses on sourcing and reselling cassava starch to industrial customers, which is relatively asset-light and scalable. This structure reduces fixed-capex commitment, enabling faster adjustment to demand shifts and preserving cash flexibility across business cycles.

Exposure to Essential Food Ingredients

Supplying cassava starch to industrial end-users ties revenues to staple food and ingredient demand, a structurally stable market. This durable end-market exposure tends to exhibit steadier long-run volume demand versus discretionary goods, supporting predictable baseline sales over months.

Negative Factors

Persistent Profitability Pressure

Negative net profit and EBIT margins indicate the business currently fails to convert revenues into operating earnings. Over a multi-month horizon, sustained unprofitability constrains the company’s ability to self-fund growth, reinvest in supply chain efficiencies, or absorb commodity price swings without restructuring.

Weak Cash Generation

Negative operating and free cash flows show cash outflows exceed operating receipts, forcing reliance on external financing. Persistently weak cash generation undermines working capital resilience in a trading model dependent on inventory and receivables, raising refinancing and liquidity risk over months.

High Leverage

A debt-to-equity ratio of 1.74 and low equity ratio signal elevated financial leverage. With negative ROE and ongoing losses, high leverage increases solvency risk and interest burden; over 2–6 months this limits flexibility to invest or weather commodity-price swings and heightens refinancing sensitivity.

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

The company makes money primarily by selling cassava-based products (notably cassava starch) to customers, earning revenue as the invoiced sales value of these commodities. Its core revenue model is commodity trading/distribution: it procures cassava products from suppliers, manages logistics and delivery, and resells to industrial end-users, generating gross profit from the spread between purchase costs (including sourcing and freight/logistics) and selling prices. Earnings are therefore driven by sales volumes, cassava/starch market prices, procurement costs, logistics efficiency, and working-capital management (inventory and receivables). Information on material long-term partnerships, customer concentration, or non-trading income streams is null.

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: Negative
• 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 Negative. The current price of 0.25 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.21, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$340.00M	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$111.24M	1.61	11.07%	―	37.73%	150.54%
0841	43 Neutral	HK$101.74M	1.70	-21.93%	―	75.21%	18.42%
0809	42 Neutral	HK$1.11B	-1.31	-37.13%	―	42.14%	-81.25%
3889	40 Underperform	HK$166.10M	-0.77	―	―	-6.04%	-340.00%