Rare Earth Magnesium Technology Group Holdings Ltd. (0601) AI Stock Analysis

• Market Cap: €52.74M
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -13.76%
• EPS Growth: -1.08%
• Country: HK
• Employees: 340
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.11
• Shares Outstanding: 592,595,100
• 10 Day Avg. Volume: 13,656,533
• 30 Day Avg. Volume: 5,323,465
• PEG Ratio: 0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -3.41
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, with significant challenges in revenue, profitability, and leverage. Technical analysis provides some short-term positive signals, but the lack of profitability and dividend yield weighs heavily on the valuation score.

Rare Earth Magnesium Technology Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Rare Earth Magnesium Technology Group Holdings Limited, an investment holding company, develops, manufactures, and sells magnesium alloy new material products in Mainland China and Europe. It also operates a dolomite mine in Baishan City, Jilin Province. The company was formerly known as Group Sense (International) Limited and changed its name to Rare Earth Magnesium Technology Group Holdings Limited in July 2018. Rare Earth Magnesium Technology Group Holdings Limited was incorporated in 1992 and is based in Tsim Sha Tsui, Hong Kong. Rare Earth Magnesium Technology Group Holdings Limited is a subsidiary of Ming Xin Developments Limited.

How the Company Makes Money

Rare Earth Magnesium Technology Group Holdings Ltd. generates revenue through the extraction and sale of magnesium and rare earth elements. The company's revenue model is based on the production and distribution of these materials to manufacturers and industrial clients who use them in the production of lightweight metals, electronic components, and other high-tech applications. Key revenue streams include the sale of raw magnesium and processed rare earth products, contracts with industrial manufacturers, and possibly strategic partnerships or joint ventures that enhance its production capabilities and market reach. The company's earnings are influenced by global demand for lightweight and high-strength materials, technological advancements in material processing, and its ability to efficiently manage resource extraction and production costs.

Rare Earth Magnesium Technology Group Holdings Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, high leverage, and shrinking assets. The income statement shows a significant decline in total revenue and consistent negative net income. The balance sheet reflects a high debt-to-equity ratio, and cash flow analysis reveals volatility and negative free cash flow.

Income Statement

The income statement shows a significant decline in total revenue from 2019 to 2024, with consistent negative net income in recent years. The gross profit margin has turned negative, reflecting operational inefficiencies or cost challenges. The revenue growth has been negative, indicating a downward trajectory. The negative EBIT and EBITDA margins further highlight operational challenges and lack of profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, signaling potential leverage risk. Equity has significantly decreased over the years, reducing the equity ratio. The company's total assets have declined, indicating a shrinking asset base. However, there is some stability in cash and cash equivalents compared to liabilities, which slightly offsets the high leverage concerns.

Cash Flow

Cash flow analysis reveals volatility, with operating cash flow significantly reduced over the years. Free cash flow has been negative in recent years, indicating cash generation issues. The operating cash flow to net income ratio has deteriorated, suggesting inefficiencies in converting revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.20M	242.70M	263.49M	383.90M	416.06M	744.84M
Gross Profit	-40.06M	-51.38M	-85.28M	46.61M	68.78M	130.17M
EBITDA	-34.01M	-270.82M	-269.24M	139.59M	-147.74M	132.72M
Net Income	-394.11M	-408.42M	-423.60M	1.40M	-331.88M	-74.01M
Balance Sheet
Total Assets	1.03B	1.03B	1.44B	1.87B	2.36B	2.56B
Cash, Cash Equivalents and Short-Term Investments	9.92M	24.73M	39.95M	38.30M	25.48M	36.10M
Total Debt	749.14M	724.41M	682.02M	640.15M	876.04M	872.32M
Total Liabilities	895.62M	869.68M	829.57M	777.22M	1.17B	1.10B
Stockholders Equity	136.50M	155.49M	612.96M	1.10B	1.19B	1.45B
Cash Flow
Free Cash Flow	-34.66M	-18.43M	7.71M	22.66M	-6.61M	-72.42M
Operating Cash Flow	-7.42M	11.14M	35.78M	28.08M	106.70M	29.79M
Investing Cash Flow	-27.70M	-22.13M	-12.85M	-1.42M	-105.82M	-93.36M
Financing Cash Flow	-5.46M	-7.91M	-699.00K	-21.98M	-15.06M	-148.01M

Rare Earth Magnesium Technology Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0601, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0601.

Rare Earth Magnesium Technology Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2623	55 Neutral	HK$1.09B	13.13	14.56%	―	-70.82%	5182.22%
0769	55 Neutral	$1.95B	-15.63	―	―	10.29%	47.66%
0433	53 Neutral	HK$1.08B	―	-4702.63%	―	0.41%	83.35%
2237	52 Neutral	HK$608.00M	-69.09	-1.88%	―	-23.72%	-196.49%
6128	49 Neutral	HK$272.98M	-1.34	-23.14%	―	-27.07%	47.86%
0601	45 Neutral	€52.74M	-0.13	―	―	-13.76%	-1.08%

Rare Earth Magnesium Technology Group Holdings Ltd. Corporate Events

Rare Earth Magnesium Technology Group Updates on Share Option Scheme

Rare Earth Magnesium Technology Group Holdings Ltd. announced supplemental information regarding its share option scheme for the year ended 31 December 2024. The company reported that no share options were granted, exercised, canceled, or lapsed during the financial year, with 22,871,950 shares available for issue under the scheme, representing approximately 3.86% of the total issued shares. This announcement does not alter any other information in the 2024 Annual Report.

Rare Earth Magnesium Technology Announces 2025 Interim Results

Rare Earth Magnesium Technology Group Holdings Ltd. has announced its unaudited interim results for the first half of 2025. The company has complied with the necessary listing requirements, and the interim report will be accessible to shareholders and the public on specified websites. This announcement reflects the company’s ongoing transparency and commitment to keeping stakeholders informed about its financial performance.

Rare Earth Magnesium Technology Group Schedules Board Meeting for Interim Results

Rare Earth Magnesium Technology Group Holdings Ltd. has announced a board meeting scheduled for August 29, 2025, to review and approve the unaudited condensed consolidated interim results for the first half of 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.