Casablanca Group Ltd. (2223) AI Stock Analysis

• Market Cap: HK$201.13M
• Dividend Yield: N/A
• Average Volume (3M): 155.20K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: -9.34%
• EPS Growth: -177.30%
• Country: HK
• Employees: 532
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.05
• Shares Outstanding: 257,854,000
• 10 Day Avg. Volume: 105,000
• 30 Day Avg. Volume: 155,200
• PEG Ratio: -0.06
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 7.06
• 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: 48 Neutral
• Price Target: HK$0.50 ▲(35.14% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and profitability issues. Technical analysis provides some positive signals with the stock trading above key moving averages, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing a solid foundation for future growth and resilience against economic downturns.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single sector, mitigating risks and enhancing the company's ability to capitalize on various market opportunities.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, which are crucial for maintaining profitability despite revenue fluctuations.

Negative Factors

Declining Revenue

Declining revenue trends can signal weakening market position or demand, which could impact long-term growth prospects if not addressed.

Cash Flow Volatility

Volatile cash flow and lack of free cash flow can hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

Profitability Challenges

Ongoing profitability challenges indicate operational inefficiencies and market pressures, which could undermine financial health and shareholder value if not resolved.

Casablanca Group Ltd. Business Overview & Revenue Model

Company Description

Casablanca Group Ltd. (2223) is a diversified investment holding company with interests in various sectors, including real estate, financial services, and technology. The company is focused on identifying and capitalizing on growth opportunities within its portfolio, delivering innovative solutions and high-quality services to its clients. Casablanca Group aims to enhance shareholder value by strategically managing its assets and forming synergistic partnerships across its sectors.

How the Company Makes Money

Casablanca Group Ltd. generates revenue primarily through its diversified investments in real estate projects, financial services, and technology ventures. Key revenue streams include rental income from its real estate holdings, management fees from financial services, and sales of technology products and services. Additionally, the company often engages in joint ventures and strategic partnerships, allowing it to share resources, reduce operational costs, and access new markets. Its ability to leverage these partnerships enhances its revenue potential and contributes significantly to its overall earnings.

Casablanca Group Ltd. Financial Statement Overview

Summary

Casablanca Group Ltd. faces challenges with declining revenues and profitability issues, as indicated by negative EBIT and net income. While the balance sheet remains strong with low leverage, cash flow volatility is a concern. Addressing operational inefficiencies and stabilizing cash flow will be crucial for improving financial health and long-term viability.

Income Statement

Casablanca Group Ltd. has experienced declining revenue over the past few years, with the most recent year showing a decrease of 13% in revenue. Gross profit margin has remained relatively stable, but the company has faced profitability challenges, evident from the negative EBIT and net income in recent years. The net profit margin is negative, indicating losses, which is concerning for long-term sustainability.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio of approximately 82%. The debt-to-equity ratio is low, indicating conservative leverage, which enhances financial stability. However, the declining stockholders' equity over the years highlights potential risks in asset and liability management.

Cash Flow

Casablanca Group Ltd. displayed volatile cash flow metrics, with operating cash flow turning zero in the latest year, raising concerns about cash generation capabilities. The free cash flow has decreased, and its absence in the latest fiscal year is a significant red flag for liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.11M	247.06M	284.10M	300.16M	320.40M	309.28M
Gross Profit	162.40M	164.44M	192.15M	186.78M	196.37M	191.70M
EBITDA	-9.43M	17.30M	18.04M	34.75M	43.41M	48.58M
Net Income	-13.24M	-9.79M	-4.64M	5.38M	11.94M	16.13M
Balance Sheet
Total Assets	430.52M	448.37M	466.27M	484.84M	522.26M	510.57M
Cash, Cash Equivalents and Short-Term Investments	135.88M	131.12M	132.53M	146.89M	142.47M	199.87M
Total Debt	26.15M	27.45M	17.24M	23.53M	24.68M	19.90M
Total Liabilities	72.23M	83.66M	85.52M	89.07M	117.54M	85.78M
Stockholders Equity	360.74M	367.43M	383.92M	394.01M	404.72M	424.79M
Cash Flow
Free Cash Flow	13.06M	9.32M	7.75M	11.56M	-495.00K	45.03M
Operating Cash Flow	22.22M	18.13M	22.22M	45.14M	39.68M	56.90M
Investing Cash Flow	3.44M	488.00K	-15.64M	-28.41M	-40.11M	-9.81M
Financing Cash Flow	-13.65M	-12.35M	-21.98M	-12.50M	-53.58M	-27.73M

Casablanca Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2223, the sentiment is Positive. The current price of 0.37 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.70, and below the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2223.

Casablanca Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$800.60M	7.26	4.94%	6.04%	0.72%	2.24%
0333	58 Neutral	HK$75.26M	-2.31	-8.92%	―	7.57%	-1383.56%
0321	52 Neutral	HK$1.46B	11.55	2.58%	9.71%	-7.47%	-33.28%
1968	49 Neutral	HK$100.48M	-3.74	-11.54%	―	17.91%	20.40%
2223	48 Neutral	HK$201.13M	-15.20	-3.62%	―	-9.34%	-177.30%