Convenience Retail Asia Limited: Company Profile and SWOT Analysis

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Convenience Retail Asia Limited: Company Profile and SWOT Analysis
Convenience Retail Asia Limited



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Convenience Retail Asia Limited Financial Snapshot



Operating Performance

Fast Facts

The company reported revenues of US$460.13 million

Headquarters Address 12th Floor, LiFung Centre, ,Hong Kong

during 2010, with a CAGR of 12.51% during 2006–

2010. Its revenue grew at an annual rate of 6.47%

Telephone + 852 299 16300

over the previous fiscal year. In 2010, the company

recorded an operating margin of 4.45%, as against

Fax + 852 263 28034 3.17% in 2009.



Website www.cr-asia.com

Revenue and Margins

Ticker Symbol, Stock Exchange 8052, Growth Enterprise Market



Number of Employees 3,710



Fiscal Year End December



Revenue (in US$ million) 460.13



Revenue (in HKD million) 3,575.24









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of

16.05% for 2010, as compared to its peers,

Efficient supply chain management Concentrated operations FamilyMart Co., Ltd. (Ticker: 8028), Dairy Farm

International Holdings Limited (Ticker: D01) and

Seven & I Holdings Co., Ltd. (Ticker: 3382), which

Strong financial performance recorded ROEs of 100.00%, 56.12% and 2.61%

respectively. The company reported an operating

Strong marketing and promotional margin of 4.45% in 2010.

activities



Opportunities Threats Return on Equity



Growth of online retail Increasing competition



Improved convenience stores sales in

Recent government regulations

Asia



New stores openings Rising inflation









Liquidity Position



The company reported a current ratio of 1.03 in 2010,

as compared to its peers, FamilyMart Co., Ltd., Dairy

Farm International Holdings Limited and Seven & I

Holdings Co., Ltd., which recorded current ratios of

1.00, 0.80 and 1.16 respectively. As of December

2010, the company recorded cash and short-term

investments of worth US$67.47 million, against zero

current debt. The company reported a debt to equity

ratio of 0.00 in 2010 as compared to its peers,

FamilyMart Co., Ltd., Dairy Farm International

Holdings Limited and Seven & I Holdings Co., Ltd.,

which recorded debt to equity ratios of 1.00, 0.63 and

0.42 respectively.









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Convenience Retail Asia Limited - SWOT Profile Page 1

Convenience Retail Asia Limited



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview .................................................................................................................................................5

1.2 Business Description ...............................................................................................................................................5

2 Analysis of Key Performance Indicators ............................................................................................... 6

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................6

2.2 Key Financial Performance Indicators .....................................................................................................................9

2.2.1 Revenue and Operating Profit .........................................................................................................................9

2.2.2 Asset, Liabilities and Capex ..........................................................................................................................10

2.2.3 Operational Efficiency ....................................................................................................................................11

2.2.4 Valuation ........................................................................................................................................................12

2.3 Competitive Benchmarking ....................................................................................................................................13

2.3.1 Market Capitalization .....................................................................................................................................13

2.3.2 Efficiency .......................................................................................................................................................14

2.3.3 Valuation ........................................................................................................................................................15

2.3.4 Turnover – Inventory and Asset ....................................................................................................................16

3 SWOT Analysis ...................................................................................................................................... 17

3.1 SWOT Analysis - Overview ...................................................................................................................................17

3.2 Strengths ...............................................................................................................................................................17

3.3 Weaknesses ..........................................................................................................................................................17

3.4 Opportunities .........................................................................................................................................................18

3.5 Threats ...................................................................................................................................................................18

4 Company Statement ............................................................................................................

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