China Rare Earth Holdings (0769) AI Stock Analysis

• Market Cap: HK$1.95B
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 10.29%
• EPS Growth: 47.66%
• Country: HK
• Employees: 220
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 2,790,450,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.19
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -2.99
• 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: 55 Neutral
• Price Target: HK$0.50 ▼(-28.57% Downside)

The overall stock score reflects significant financial performance challenges, including declining revenues and persistent losses, which are the primary concerns. Technical analysis shows positive momentum, providing some optimism. However, the poor valuation metrics, highlighted by a negative P/E ratio, emphasize financial distress, limiting the attractiveness of the stock.

China Rare Earth Holdings Business Overview & Revenue Model

Company Description

China Rare Earth Holdings Limited, an investment holding company, engages in manufacturing and selling rare earth products and refractory products in the People's Republic of China, Japan, Europe, and internationally. It offers rare earth products for use in electronic devices, computers, electronic motors, LCDs, DVDs, magnetic materials, magnetic memory chips, fiber optics, superconductors, mobile phone batteries, precision optics, and various energy-saving environmental protection products. The company also provides refractory products, such as high temperature ceramics products for use in heat-treatment facilities for the petrochemical, steel metallurgy, non-ferrous metallurgy, glass, construction material, chemical fertilizer, and ceramics industries. In addition, it engages in the trading of rare earth products; and manufacture and sale of magnesium grains products. The company was formerly known as Yixing Xinwei Holdings Limited and changed its name to China Rare Earth Holdings Limited in May 2000. China Rare Earth Holdings Limited was founded in 1987 and is headquartered in Yixing, the People's Republic of China.

How the Company Makes Money

China Rare Earth Holdings generates revenue through the sale of processed rare earth materials, which are used in a variety of industries, including electronics, automotive, and green technology. The company's revenue model is largely based on the pricing of rare earth elements in the global market, which can fluctuate based on demand and supply dynamics. Key revenue streams include the direct sales of rare earth oxides and alloys to manufacturers and industrial clients. Additionally, the company may enter into strategic partnerships with technology firms and manufacturers to secure long-term supply contracts, which can contribute to stable revenue flows. The company's earnings are also influenced by its operational efficiency and cost management practices in mining and processing rare earth minerals.

China Rare Earth Holdings Financial Statement Overview

Summary

China Rare Earth Holdings faces significant challenges with declining revenues and persistent losses affecting profitability and cash flow. Despite a strong equity base and low leverage, the company needs to address its operational inefficiencies to return to profitability. The current trajectory suggests financial instability unless corrective measures are implemented.

Income Statement

The company's income statement reveals declining revenues alongside persistent net losses, indicating negative revenue growth. Gross profit margin and net profit margin are negative, reflecting ongoing operational challenges. EBIT and EBITDA margins also remain negative, signaling inefficiencies in cost management and a weak profit structure.

Balance Sheet

The balance sheet shows a strong equity base with a high equity ratio, indicating financial stability. However, the return on equity is negative due to net losses. The debt-to-equity ratio is low, suggesting low leverage and minimal financial risk. Nonetheless, persistent losses may erode equity value over time.

Cash Flow

The cash flow statement highlights a significant decline in operating cash flow, with free cash flow fluctuating and recently turning negative. The operating cash flow to net income ratio is not meaningful due to negative net income, and free cash flow has not shown consistent growth, indicating cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	756.66M	686.07M	810.41M	1.21B	1.11B
Gross Profit	-52.99M	-151.31M	1.12M	85.98M	75.83M
EBITDA	-54.20M	-175.96M	-353.35M	64.18M	63.30M
Net Income	-104.92M	-200.54M	-373.30M	24.27M	19.71M
Balance Sheet
Total Assets	2.00B	2.15B	2.41B	3.05B	2.93B
Cash, Cash Equivalents and Short-Term Investments	965.95M	1.30B	1.45B	1.82B	1.74B
Total Debt	664.00K	1.02M	1.39M	1.74M	3.35M
Total Liabilities	107.22M	109.55M	133.19M	156.76M	147.94M
Stockholders Equity	1.92B	2.06B	2.29B	2.88B	2.78B
Cash Flow
Free Cash Flow	-312.75M	-169.79M	-232.80M	30.39M	152.02M
Operating Cash Flow	-312.75M	-169.78M	-225.84M	120.59M	157.12M
Investing Cash Flow	2.54M	35.60M	-5.93M	-89.77M	11.73M
Financing Cash Flow	-443.00K	-680.00K	-432.00K	-949.00K	-1.38M

China Rare Earth Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 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:0769, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.70, and above the 200-day MA of 0.62, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0769.

China Rare Earth Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2245	72 Outperform	HK$38.96B	13.82	24.57%	1.89%	60.77%	100.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0769	55 Neutral	HK$1.95B	-15.63	―	―	10.29%	47.66%
1370	51 Neutral	HK$457.89M	-1.34	-41.19%	―	-6.51%	41.00%
0601	45 Neutral	HK$48.00M	-0.12	―	―	-13.76%	-1.08%
0433	41 Neutral	HK$1.14B	-3.58	-4702.63%	―	0.41%	83.35%
6128	38 Underperform	HK$200.50M	-0.99	-23.14%	―	-27.07%	47.86%

China Rare Earth Holdings Corporate Events

China Rare Earth Holdings Faces Trading Suspension Amid Governance Challenges

China Rare Earth Holdings Limited provided an update on its resumption progress and continued suspension of trading on the Hong Kong Stock Exchange. The company revealed significant issues, including lawsuits against subsidiaries, potential financial misrepresentation, and operational challenges, pointing to risks of asset misappropriation and diminished operations. These findings could critically impact stakeholders and market confidence, while raising concerns about the company’s governance and financial stability.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Unveils Forensic Investigation Findings on Tungsten Bars Acquisition

China Rare Earth Holdings Limited has announced the findings of an independent forensic investigation into its acquisition of tungsten bars. The investigation was prompted by complaints from former directors questioning the validity and authenticity of the acquisition process, including concerns over valuation, quality, and approval procedures. The independent investigation committee, with the help of a forensic investigator, assessed these issues and reported the findings to the board. The outcome of this investigation could have significant implications for the company’s operations and stakeholder trust, as it addresses potential irregularities in the acquisition process.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Operational and Legal Challenges Amidst Trading Suspension

China Rare Earth Holdings Limited has provided a supplemental announcement regarding its ongoing resumption progress, litigation updates, and continued suspension of trading. The company is dealing with allegations of misappropriation of assets by former management, which has led to minimal or suspended operations of its subsidiaries. The current board is actively working to retrieve necessary documents and records, facing challenges in accessing them. The company is also in the process of changing legal representatives to facilitate this retrieval and has discovered information on several lawsuits against its subsidiaries.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.