Ares Asia Limited (0645) AI Stock Analysis

• Market Cap: HK$62.61M
• Dividend Yield: N/A
• Average Volume (3M): 59.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -27.98%
• EPS Growth: -16.20%
• Country: HK
• Employees: 6
• Sector: Real Estate
• Sector Strength: 63
• Industry: Coal
• EPS (TTM): -0.01
• Shares Outstanding: 513,175,400
• 10 Day Avg. Volume: 165,200
• 30 Day Avg. Volume: 59,066
• PEG Ratio: 0.36
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.12
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 41.32
• Enterprise Value/Ebitda: -2.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

The stock of Ares Asia Limited scores 55, primarily weighed down by financial struggles, including declining revenues and negative cash flows which pose liquidity risks. Despite these concerns, the stock shows positive technical trends with strong price movement above key averages. However, valuation remains a concern due to negative earnings and lack of dividends, reflecting ongoing operational challenges.

Ares Asia Limited Business Overview & Revenue Model

Company Description

Ares Asia Limited (0645) is a company primarily engaged in the trading of thermal coal. The company operates within the energy sector, focusing on supplying coal to various markets, primarily in Asia. Its core service involves sourcing and selling coal, leveraging its expertise in logistics and supply chain management to ensure efficient delivery to its clients.

How the Company Makes Money

Ares Asia Limited makes money through its trading operations in the thermal coal market. The company purchases coal from producers and sells it to end-users, such as power plants and industrial users, primarily in Asian countries where coal remains a significant energy source. Revenue is generated from the margin between the purchase price and the selling price of coal. The company may also engage in long-term supply agreements with key clients, providing a stable revenue stream. Additionally, Ares Asia Limited's earnings can be influenced by fluctuations in coal prices, transportation costs, and its ability to manage supply chain efficiencies.

Ares Asia Limited Financial Statement Overview

Summary

Ares Asia Limited faces significant financial challenges, with declining revenues and persistent losses impacting profitability. Its balance sheet remains relatively stable with low leverage, but cash flow issues highlight liquidity risks. The company must address operational inefficiencies to improve financial health and enable growth.

Income Statement

The company has experienced declining revenue over recent years, with a notable drop from 2020 to 2024. Gross profit margins are thin, and the company has consistently reported net losses, indicating challenges in profitability. Revenue growth showed volatility, with a significant decline in the most recent period.

Balance Sheet

The balance sheet shows a strong equity position compared to liabilities, with the equity ratio indicating financial stability. The company has maintained low levels of debt, resulting in a favorable debt-to-equity ratio. However, the declining asset base is a concern for future operations.

Cash Flow

Cash flow analysis reveals negative operating cash flows, putting pressure on liquidity. Free cash flow has also been negative in recent periods, reflecting operational challenges. The cash position is declining, which could hamper future investments or debt servicing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
45.77M	70.38M	52.59M	101.56M	117.51M	99.87M
	Gross Profit
257.00K	331.00K	1.06M	408.00K	869.00K	1.27M
	EBIT
-1.36M	-1.26M	-757.00K	-1.93M	-1.98M	-108.00K
	EBITDA
-1.35M	-1.25M	-753.00K	-1.83M	-1.78M	88.00K
	Net Income Common Stockholders
-1.36M	-1.26M	-829.00K	-2.13M	-2.26M	-689.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.77M	6.26M	7.70M	8.78M	9.17M	10.43M
	Total Assets
7.20M	7.82M	19.17M	24.62M	47.60M	29.98M
	Total Debt
369.00K	139.00K	341.00K	533.00K	139.00K	377.00K
	Net Debt
-2.40M	-6.12M	-7.35M	-8.25M	-9.03M	-10.05M
	Total Liabilities
892.00K	865.00K	10.95M	15.57M	36.42M	16.54M
	Stockholders Equity
6.31M	6.96M	8.22M	9.05M	11.18M	13.44M
Cash Flow		Free Cash Flow
-1.47M	-1.23M	-1.78M	31.13M	-27.82M	218.00K
	Operating Cash Flow
-1.45M	-1.21M	-1.75M	31.13M	-27.82M	218.00K
	Investing Cash Flow
-20.00K	-20.00K	878.00K	-2.00K	-900.00K	1.00K
	Financing Cash Flow
-202.00K	-210.00K	-210.00K	-31.52M	27.46M	6.36M

Ares Asia Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 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:0645, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.20, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0645.

Ares Asia Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1898	76 Outperform	$139.78B	5.86	12.03%	11.62%	-4.04%	-12.32%
1051	73 Outperform	$4.43B	11.94	3.05%	1.23%	-44.82%	569.29%
2880	67 Neutral	$34.12B	15.84	2.45%	2.99%	-13.59%	-26.46%
1164	63 Neutral	$17.03B	49.78	13.49%	0.13%	17.13%	-31.19%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
1171	61 Neutral	$116.90B	5.37	22.05%	7.12%	2.87%	―
0645	55 Neutral	HK$62.61M	―	-19.55%	―	-27.98%	-16.20%

Ares Asia Limited Corporate Events

Ares Asia Limited Announces Key Management Changes

Ares Asia Limited has announced a change in its company secretary and authorized representative roles, effective April 25, 2025. Ms. Fung Mei Ling has resigned from her position, and Mr. Lee Tsi Fun, Nicholas, with over 20 years of experience in international audit firms and listed companies, has been appointed as her successor.

Ares Asia Initiates Arbitration Over Coal Purchase Dispute

Ares Asia Limited has announced that its subsidiary, Ares Asia Resources Pte. Ltd., has initiated arbitration proceedings against a Singaporean supplier due to a contractual dispute over a coal purchase agreement. The arbitration seeks compensation for damages and costs totaling USD3,833,500. The outcome of this arbitration could impact the recoverability of receivables from an end customer, amounting to approximately USD3,317,000, and potentially affect the company’s financial position. The company is actively seeking legal advice and will update stakeholders as the situation develops.