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

• Market Cap: HK$49.19M
• Dividend Yield: N/A
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -7.89%
• EPS Growth: 10.33%
• Country: HK
• Employees: 340
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): -0.56
• Shares Outstanding: 592,595,100
• 10 Day Avg. Volume: 7,261,273
• 30 Day Avg. Volume: 2,778,074
• PEG Ratio: -1.43
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.92
• 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: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The company's stock reflects significant financial distress, with severe challenges in profitability and cash flow. Although technical indicators suggest some short-term price recovery, the lack of profitability and high leverage are major concerns. Valuation remains unattractive due to the negative P/E ratio and absence of dividends, making it a risky investment.

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

Company Description

Rare Earth Magnesium Technology Group Holdings Ltd. (0601) is a company engaged in the production and supply of magnesium-related products. The company operates in the sectors of manufacturing and technology, focusing on the development of magnesium alloys and other magnesium-based materials. These products are used in various industries, including automotive, aerospace, electronics, and construction, where lightweight and durable materials are in high demand.

How the Company Makes Money

Rare Earth Magnesium Technology Group Holdings Ltd. generates revenue primarily through the sale of its magnesium alloys and related products. The company's key revenue streams include contracts with manufacturers in the automotive and aerospace sectors, where magnesium's lightweight properties are particularly valuable. Additionally, the company may engage in partnerships or joint ventures with other firms to enhance its production capabilities and expand its market reach. The demand for lightweight materials in various industries drives the company's earnings, alongside potential research and development collaborations that lead to innovative applications of magnesium technology.

Rare Earth Magnesium Technology Group Holdings Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, including declining revenues, negative profitability, high leverage, and shrinking assets. These factors highlight serious operational and financial stability risks.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
242.70M	263.49M	383.90M	416.06M	744.84M
	Gross Profit
-51.38M	-85.28M	46.61M	68.78M	130.17M
	EBIT
-108.56M	-166.63M	-181.58M	-78.80M	28.71M
	EBITDA
-26.37M	-269.24M	139.59M	-147.74M	132.72M
	Net Income Common Stockholders
-408.42M	-423.60M	1.40M	-331.88M	-74.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.73M	39.95M	28.60M	25.08M	36.10M
	Total Assets
1.03B	1.44B	1.87B	2.36B	2.56B
	Total Debt
724.41M	682.02M	640.15M	876.04M	872.32M
	Net Debt
699.70M	642.06M	611.55M	850.97M	836.22M
	Total Liabilities
869.68M	829.57M	777.22M	1.17B	1.10B
	Stockholders Equity
155.49M	612.96M	1.10B	1.19B	1.45B
Cash Flow		Free Cash Flow
-18.43M	7.71M	22.66M	-6.61M	-72.42M
	Operating Cash Flow
11.14M	35.78M	28.08M	106.70M	29.79M
	Investing Cash Flow
-22.13M	-12.85M	-1.42M	-105.82M	-93.36M
	Financing Cash Flow
-7.91M	-699.00K	-21.98M	-15.06M	-148.01M

Rare Earth Magnesium Technology Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 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:0601, the sentiment is Neutral. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2623	55 Neutral	HK$175.14M	2.53	11.93%	―	-78.36%	-2.05%
2237	55 Neutral	HK$544.00M	60.53	-2.83%	―	-30.01%	-159.44%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
0601	49 Neutral	HK$49.19M	―		―	-7.89%	10.33%
0433	48 Neutral	HK$437.91M	―	-9999.00%	―	-27.61%	97.34%
0769	42 Neutral	HK$1.95B	―	-5.26%	―	10.29%	47.66%

Rare Earth Magnesium Technology Group Holdings Ltd. Corporate Events

Rare Earth Magnesium Technology Group Announces Annual General Meeting and Key Resolutions

Rare Earth Magnesium Technology Group Holdings Ltd. has announced its upcoming annual general meeting scheduled for June 30, 2025, in Hong Kong. The meeting will address ordinary business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, special resolutions will be considered, including the authorization for the company to repurchase its own shares and a general mandate for directors to issue additional shares. These resolutions aim to enhance the company’s operational flexibility and shareholder value.

Rare Earth Magnesium Technology Group Announces 2024 Annual Results

Rare Earth Magnesium Technology Group Holdings Ltd. announced its audited results for the year ending December 31, 2024. The company plans to distribute the printed version of its 2024 annual report to shareholders and make it available online by April 30, 2025. This announcement is part of the company’s compliance with the listing rules of the Hong Kong Stock Exchange, potentially impacting its transparency and stakeholder relations.