Casablanca Group Ltd. (2223) AI Stock Analysis

• Market Cap: HK$67.04M
• Dividend Yield: N/A
• Average Volume (3M): 14.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: -13.04%
• EPS Growth: -111.11%
• Country: HK
• Employees: 532
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.04
• Shares Outstanding: 257,854,000
• 10 Day Avg. Volume: 25,000
• 30 Day Avg. Volume: 14,333
• PEG Ratio: -0.34
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.70
• 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: 55 Neutral
• Price Target: ―

Casablanca Group Ltd. is currently facing significant financial challenges with declining revenues and negative net income, impacting its overall score. While the technical indicators suggest positive momentum, the stock's valuation remains unattractive due to its negative P/E ratio and lack of dividends. The company's strong balance sheet provides some stability, but improving cash flow and resolving profitability issues are critical for future performance.

Casablanca Group Ltd. Business Overview & Revenue Model

Company Description

Casablanca Group Limited, an investment holding company, designs, manufactures, distributes, and retails bedding products in Hong Kong, Macau, the People's Republic of China, and internationally. Its products include bed linens, duvets, and pillows, as well as other home accessories, such as blankets, mattresses, towels, etc. The company sells its products under the Casa Calvin, Casablanca, and CASA-V brands. It also trades in home accessories and furniture. The company was founded in 1993 and is headquartered in Sha Tin, Hong Kong. Casablanca Group Limited is a subsidiary of World Empire Investment Inc.

How the Company Makes Money

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
247.06M	284.10M	300.16M	320.40M	309.28M
	Gross Profit
164.44M	192.15M	186.78M	196.37M	191.70M
	EBIT
-17.12M	-8.11M	5.09M	18.46M	23.72M
	EBITDA
-6.81M	18.04M	31.09M	45.27M	51.79M
	Net Income Common Stockholders
-9.79M	-4.64M	5.38M	11.94M	16.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.85M	132.53M	146.89M	142.47M	193.63M
	Total Assets
448.37M	466.27M	484.84M	522.26M	510.57M
	Total Debt
27.45M	17.24M	23.53M	24.68M	19.90M
	Net Debt
-101.86M	-105.96M	-115.71M	-110.44M	-168.49M
	Total Liabilities
83.66M	85.52M	89.07M	117.54M	85.78M
	Stockholders Equity
367.43M	383.92M	394.01M	404.72M	424.79M
Cash Flow		Free Cash Flow
0.00	7.75M	11.56M	-495.00K	45.03M
	Operating Cash Flow
18.36M	22.22M	45.14M	39.68M	56.90M
	Investing Cash Flow
0.00	-15.64M	-28.41M	-40.11M	-9.81M
	Financing Cash Flow
0.00	-21.98M	-12.50M	-53.58M	-27.73M

Casablanca Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2223, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.28, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2223.

Casablanca Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	HK$259.84B	15.49	28.11%	2.61%	11.51%	47.88%
3988	77 Outperform	$1.61T	5.27	9.57%	11.45%	6.59%	-0.89%
1913	75 Outperform	$120.01B	16.95	20.60%	2.98%	14.60%	24.66%
2313	75 Outperform	$80.72B	11.93	18.17%	4.84%	12.76%	34.50%
1177	66 Neutral	$98.90B	52.12	6.14%	2.17%	7.63%	-24.23%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
2223	55 Neutral	HK$67.04M	―	-2.60%	―	-13.04%	-111.11%

Casablanca Group Ltd. Corporate Events

Casablanca Group Announces 2025 Annual General Meeting

Casablanca Group Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Huizhou, Guangdong Province, PRC. The meeting will cover several key agenda items, including the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of auditors. Additionally, shareholders will consider a resolution to authorize the board to issue new shares, which could impact the company’s capital structure and market operations.

Casablanca Group Reports Increased Losses Amid Revenue Decline in 2024

Casablanca Group Limited has announced its audited consolidated results for the year ending December 31, 2024, reporting a 13% decline in revenue to HK$247,058,000 and a significant increase in loss attributable to owners by 110.9% to HK$9,786,000. The company faced challenges with a reduced gross profit margin and increased net loss margin, indicating operational difficulties. Despite a slight increase in cash reserves, the overall financial performance reflects a challenging year, impacting stakeholders and potentially affecting the company’s market positioning.

Casablanca Group Issues Profit Warning for 2024

Casablanca Group Limited has issued a profit warning, indicating an expected increase in losses for the year ending December 31, 2024. The company anticipates a loss between HK$9.0 million and HK$10.0 million, compared to a loss of HK$4.6 million in 2023, primarily due to a decline in overall sales. The figures are based on unaudited management accounts and may be subject to change, with final results expected by March 2025.

Casablanca Group Schedules Board Meeting for Annual Results and Dividend Decision

Casablanca Group Limited has announced that its board of directors will convene on March 25, 2025, to approve the annual results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is crucial as it will determine the financial performance and potential shareholder returns, impacting the company’s market position and stakeholder interests.