Convenience Retail Asia Limited (0831) AI Stock Analysis

• Market Cap: HK$193.58M
• Dividend Yield: 24.19%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.22
• Revenue Growth: -0.04%
• EPS Growth: -58.49%
• Country: HK
• Employees: 2,077
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Grocery Stores
• EPS (TTM): 0.03
• Shares Outstanding: 777,417,000
• 10 Day Avg. Volume: 4,619,710
• 30 Day Avg. Volume: 2,338,770
• PEG Ratio: -0.14
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.59
• 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

Convenience Retail Asia Limited's stock score of 56 reflects significant challenges in financial performance, notably in declining profitability and cash flow issues. Poor technical indicators suggest further downside risk. However, the stock's attractive valuation with a low P/E ratio and high dividend yield provides a silver lining, potentially offering opportunities should operational improvements occur.

Convenience Retail Asia Limited Business Overview & Revenue Model

Company Description

Convenience Retail Asia Limited (0831) is a leading retail company based in Hong Kong, specializing in the operation of convenience stores and bakery outlets. The company focuses on providing a wide range of everyday consumer goods, fresh food, and ready-to-eat products through its well-known retail brands. Convenience Retail Asia Limited is committed to delivering high-quality products and exceptional customer service across its network of conveniently located stores.

How the Company Makes Money

Convenience Retail Asia Limited generates revenue primarily through the sale of consumer goods and food products in its convenience stores and bakery outlets. The company's key revenue streams include direct sales from its retail operations, which encompass a diverse array of products such as snacks, beverages, personal care items, and bakery goods. Additionally, the company benefits from strategic partnerships and collaborations with suppliers and brands to offer exclusive products and promotions. Convenience Retail Asia Limited's earnings are further bolstered by its focus on operational efficiency and customer loyalty programs, which help drive repeat business and increase average transaction values.

Convenience Retail Asia Limited Financial Statement Overview

Summary

Convenience Retail Asia Limited is experiencing challenges with declining profitability and cash flow generation. While the balance sheet remains stable with moderate leverage, the declining return on equity reflects inefficiencies in generating shareholder returns. The income statement shows declining margins, and the cash flow statement indicates zero operating and free cash flow in 2024, highlighting significant operational challenges.

Income Statement

Convenience Retail Asia Limited showed a consistent revenue stream with a slight decline in recent years. The gross profit margin remained stable, but there was a noticeable decrease in EBIT margin from 4.91% in 2021 to 2.79% in 2024, indicating pressure on operational efficiency. Net profit margin dropped from 5.90% in 2021 to 1.61% in 2024, reflecting challenges in maintaining bottom-line profitability. The revenue growth was negative, with a slight decline from 2023 to 2024.

Balance Sheet

The company's balance sheet reflects a stable equity position, with a debt-to-equity ratio of 0.37 in 2024, indicating moderate leverage. The equity ratio was approximately 52.36% in 2024, suggesting a strong reliance on equity financing. However, the return on equity declined from 12.47% in 2020 to 3.76% in 2024, indicating reduced efficiency in generating returns for shareholders.

Cash Flow

The cash flow statement shows a decline in operating cash flow, with zero reported in 2024, indicating challenges in cash generation from operations. The free cash flow was also zero in 2024, suggesting limited capacity for reinvestment or returning value to shareholders. Previous years showed positive free cash flow, indicating a downward trend.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.49B	1.49B	1.46B	1.36B	1.19B
	Gross Profit
786.18M	794.55M	739.54M	682.95M	638.47M
	EBIT
41.44M	72.97M	83.76M	87.66M	67.46M
	EBITDA
258.63M	285.38M	273.45M	258.87M	245.34M
	Net Income Common Stockholders
23.91M	57.71M	67.78M	80.37M	61.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
206.02M	220.64M	256.13M	290.29M	373.14M
	Total Assets
1.21B	1.29B	1.32B	1.32B	1.34B
	Total Debt
233.75M	274.60M	257.01M	234.76M	205.04M
	Net Debt
27.73M	53.96M	884.00K	-55.52M	-168.11M
	Total Liabilities
578.18M	625.90M	668.02M	676.22M	765.31M
	Stockholders Equity
635.42M	660.19M	655.82M	644.35M	578.85M
Cash Flow		Free Cash Flow
200.76M	181.08M	173.62M	152.22M	328.38M
	Operating Cash Flow
244.79M	219.10M	234.23M	202.31M	356.79M
	Investing Cash Flow
-34.91M	-32.75M	-59.60M	-119.00M	3.14B
	Financing Cash Flow
-218.46M	-221.55M	-206.30M	-166.84M	-3.42B

Convenience Retail Asia Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0831, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.29, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 12.64 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0831.

Convenience Retail Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0331	78 Outperform	HK$2.51B	5.23	49.10%	7.66%	3.11%	-2.34%
0012	68 Neutral	$116.44B	18.49	1.94%	7.44%	-7.64%	-32.01%
Sector *	64 Neutral	$8.72B	14.80	5.05%	174.27%	3.54%	3.26%
0831	56 Neutral	HK$193.58M	8.08	3.69%	24.19%	-0.04%	-58.49%
0683	52 Neutral	$28.39B	35.14	0.76%	6.92%	50.11%	-75.09%
0119	50 Neutral	$5.58B	28.13	0.53%	6.22%	-3.13%	-87.57%
0806	48 Neutral	$2.72B	87.13	0.88%	―	-12.96%	35.71%

Convenience Retail Asia Limited Corporate Events

Convenience Retail Asia Limited Announces 2025 AGM and Key Resolutions

Convenience Retail Asia Limited has announced its Annual General Meeting scheduled for May 15, 2025, where key resolutions will be discussed, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the directors to manage the company’s share capital, which could impact the company’s financial flexibility and stakeholder interests.

Convenience Retail Asia Limited Grants 20 Million Share Options to Align Interests and Retain Talent

Convenience Retail Asia Limited has announced the grant of 20 million share options to eligible individuals under its share option scheme. This move is intended to align the interests of the grantees with the company’s objectives, promoting long-term financial success and shareholder value. The share options, which have no performance targets or clawback mechanisms, are part of the company’s strategy to incentivize and retain key personnel.

Convenience Retail Asia Limited Declares Final Dividend for 2024

Convenience Retail Asia Limited announced a final ordinary dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend highlights the company’s commitment to returning value to its shareholders and may impact its financial positioning by demonstrating stability and shareholder confidence.

Convenience Retail Asia Faces Challenging Year Amid Retail Shifts

Convenience Retail Asia Limited reported a challenging financial year ending December 2024, with a significant decline in core operating profit by 43.2% and profit attributable to shareholders dropping by 58.6%. The company faced reduced retail foot traffic and changing consumer spending patterns, impacting its retail bakery and eyewear segments. Despite these challenges, the wholesale bakery business performed well, and the company maintained a strong financial position with net cash of HK$207 million. The board declared a final dividend of 1 HK cent per share, reflecting a 97% payout ratio.

Convenience Retail Asia to Announce Annual Results and Dividend Decision

Convenience Retail Asia Limited has announced that its board of directors will convene on March 20, 2025, to approve the annual results for the year ending December 31, 2024, and to consider a final dividend recommendation. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market position and stakeholder interests.