Grand Ocean Advanced Resources Co., Ltd. (0065) AI Stock Analysis

• Market Cap: HK$76.12M
• Dividend Yield: N/A
• Average Volume (3M): 434.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -20.97%
• EPS Growth: -213.53%
• Country: HK
• Employees: 426
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.05
• Shares Outstanding: 245,536,910
• 10 Day Avg. Volume: 957,636
• 30 Day Avg. Volume: 434,390
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -5.08
• 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: 45 Neutral
• Price Target: HK$0.31 ▼(-4.06% Downside)

The most significant factor affecting the stock score is the company's weak financial performance, particularly in profitability and cash flow management. Technical analysis suggests a bearish trend, though there are signs of potential stabilization. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield, further impacting the overall score.

Positive Factors

Low Financial Leverage

An extremely low debt-to-equity ratio provides durable financial flexibility: the company can withstand revenue volatility, fund strategic R&D or capex without immediate refinancing, and has lower interest burden risk, supporting long-term restructuring or growth initiatives.

High-value, Diversified Revenue Streams

Focus on marine biotech products for pharmaceuticals, cosmetics and environmental uses gives access to higher-margin markets and institutional partners. Diversified end-markets and potential grants/partnerships create more stable, premium revenue opportunities over the medium term.

Healthy Gross Margin

A gross margin near 37% indicates solid product-level economics: with improved scale or tighter operating costs, the company can convert product strength into operating profitability, making recovery feasible if structural issues are addressed.

Negative Factors

Negative Profitability

Persistently negative ROE and net margins signal the business is destroying shareholder value and failing to translate revenues into returns. Over months this undermines retained earnings, restricts reinvestment, and complicates capital-raising without operational turnaround.

Weak Cash Generation

Negative operating cash flow and falling free cash flow are structural red flags: they reduce liquidity buffer, force dependence on external financing, and limit ability to fund R&D or capex, raising solvency and continuity risks if trends persist.

Declining Revenue Trend

Material revenue declines indicate shrinking market traction or pricing pressure across core products. Continued top-line contraction reduces economies of scale, stresses margins and cash flow, and makes investments in new product development or market expansion harder to sustain.

Grand Ocean Advanced Resources Co., Ltd. Business Overview & Revenue Model

Company Description

Grand Ocean Advanced Resources Company Limited, an investment holding company, engages in coal mining business in Inner Mongolia, the People's Republic of China. It produces and sells coal; and provides management services. The company was formerly known as DeTeam Company Limited and changed its name to Grand Ocean Advanced Resources Company Limited in June 2015. Grand Ocean Advanced Resources Company Limited was incorporated in 2000 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Grand Ocean Advanced Resources Co., Ltd. generates revenue through multiple streams, primarily from the sale of processed marine products and advanced materials derived from its resource exploration activities. The company capitalizes on its expertise in marine biotechnology to develop high-value products for sectors such as pharmaceuticals and cosmetics, which often yield premium pricing. Additionally, Grand Ocean may engage in partnerships with research institutions and industry players, enhancing its product offerings and expanding its market reach. These collaborations can also lead to joint ventures, further diversifying revenue sources. Furthermore, the company may explore government contracts and grants aimed at environmental sustainability projects, contributing to its financial stability.

Grand Ocean Advanced Resources Co., Ltd. Financial Statement Overview

Summary

Grand Ocean Advanced Resources Co., Ltd. faces significant financial challenges, particularly in profitability and cash flow management. Despite a strong equity position with low leverage, the negative profitability metrics and cash flow issues indicate operational inefficiencies and liquidity risks.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -3.74% in the latest year. The company is experiencing negative net profit margins and EBIT margins, indicating operational challenges. Despite a reasonable gross profit margin of 37.29%, the overall profitability is weak due to significant net losses.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.012, suggesting low financial leverage. However, the return on equity is negative at -35.22%, indicating inefficiencies in generating returns from equity. The equity ratio is healthy, showing stability in asset financing.

Cash Flow

The cash flow statement reveals negative free cash flow growth and a negative operating cash flow, highlighting liquidity concerns. The free cash flow to net income ratio is high, suggesting cash flow issues despite accounting profits. Overall, cash flow management appears to be a significant challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.97M	180.93M	187.96M	191.18M	183.02M	133.01M
Gross Profit	56.55M	67.47M	65.21M	81.17M	73.86M	48.34M
EBITDA	-43.57M	-26.73M	-11.47M	49.69M	46.49M	-50.44M
Net Income	-51.20M	-50.77M	-23.73M	10.24M	14.37M	-42.51M
Balance Sheet
Total Assets	291.70M	284.67M	307.23M	305.35M	260.00M	263.30M
Cash, Cash Equivalents and Short-Term Investments	82.90M	73.41M	95.36M	117.49M	93.00M	98.27M
Total Debt	1.45M	1.79M	86.00K	39.67M	596.00K	0.00
Total Liabilities	107.82M	96.42M	109.74M	111.94M	81.22M	78.62M
Stockholders Equity	136.90M	144.16M	138.60M	123.13M	119.13M	105.50M
Cash Flow
Free Cash Flow	-26.54M	-12.35M	-18.47M	-4.05M	14.67M	-34.95M
Operating Cash Flow	-15.71M	-620.00K	6.33M	16.54M	18.03M	-15.12M
Investing Cash Flow	-23.14M	-77.80M	-26.53M	-20.54M	-24.73M	-18.67M
Financing Cash Flow	-349.00K	58.67M	-945.00K	38.97M	-1.03M	-2.88M

Grand Ocean Advanced Resources Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0065, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.35, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0065.

Grand Ocean Advanced Resources Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1229	68 Neutral	HK$151.54M	6.92	9.86%	―	42.60%	-67.94%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0645	48 Neutral	HK$86.73M	-4.59	-47.78%	―	-98.92%	-76.92%
0276	46 Neutral	HK$137.33M	-0.08	―	―	-38.71%	-193.94%
0065	45 Neutral	HK$76.12M	-1.24	-31.67%	―	-20.97%	-213.53%
0704	43 Neutral	HK$95.10M	-1.07	-3.24%	―	―	―
1738	42 Neutral	HK$173.95M	-0.25	―	―	-42.18%	-3.23%