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China Rare Earth Holdings Limited (HK:0769)
:0769

China Rare Earth Holdings (0769) AI Stock Analysis

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HK

China Rare Earth Holdings

(OTC:0769)

Rating:55Neutral
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 (0769) vs. iShares MSCI Hong Kong ETF (EWH)

China Rare Earth Holdings Business Overview & Revenue Model

Company DescriptionChina Rare Earth Holdings Limited (0769) is a leading company engaged in the production and sale of rare earth products and refractory materials. It operates primarily in two sectors: the rare earth segment and the refractory segment. The rare earth segment produces a variety of rare earth elements and compounds, which are essential in the manufacturing of high-tech products such as electronics, renewable energy technologies, and automotive components. The refractory segment produces materials that can withstand high temperatures and are used in industries like steel, cement, and glass production.
How the Company Makes MoneyChina Rare Earth Holdings generates revenue through the sale of its rare earth and refractory products. The rare earth segment primarily contributes to the company's earnings by supplying rare earth oxides, metals, and alloys, which are crucial for various industrial applications. These products are sold to manufacturers in sectors such as electronics, automotive, and energy, where they are used in the production of catalysts, batteries, and other high-performance components. The refractory segment supplements the company's income by providing materials that are essential for high-temperature industrial processes. The company's strategic partnerships with enterprises in key industries and its focus on innovation and quality enable it to maintain a competitive edge and drive sales.

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
35
Negative
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue756.66M686.07M810.41M1.21B1.11B
Gross Profit-52.99M-151.31M1.12M85.98M75.83M
EBITDA-54.20M-175.96M-353.35M56.73M47.81M
Net Income-104.92M-200.54M-373.30M24.27M19.71M
Balance Sheet
Total Assets2.00B2.15B2.41B3.05B2.93B
Cash, Cash Equivalents and Short-Term Investments965.95M1.30B1.45B1.82B1.74B
Total Debt664.00K1.02M1.39M1.74M3.35M
Total Liabilities107.22M109.55M133.19M156.76M147.94M
Stockholders Equity1.92B2.06B2.29B2.88B2.78B
Cash Flow
Free Cash Flow-312.75M-169.79M-232.80M30.39M152.02M
Operating Cash Flow-312.75M-169.78M-225.84M120.59M157.12M
Investing Cash Flow2.54M35.60M-5.93M-89.77M11.73M
Financing Cash Flow-443.00K-680.00K-432.00K-949.00K-1.38M

China Rare Earth Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.70
Price Trends
50DMA
0.52
Positive
100DMA
0.46
Positive
200DMA
0.43
Positive
Market Momentum
MACD
0.05
Positive
RSI
64.21
Neutral
STOCH
66.67
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 below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.52, and above the 200-day MA of 0.43, indicating a neutral trend. The MACD of 0.05 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$16.86B8.5117.83%3.61%36.51%66.77%
58
Neutral
HK$17.12B4.56-6.43%5.15%-3.18%-62.89%
55
Neutral
$1.95B-5.26%10.29%47.66%
45
Neutral
€43.26M
-7.89%10.33%
43
Neutral
HK$457.89M-35.00%-5.27%47.34%
41
Neutral
HK$437.91M-9999.00%-27.61%84.83%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0769
China Rare Earth Holdings
0.70
0.38
122.22%
HK:0433
North Mining Shares Co., Ltd.
0.04
0.01
33.33%
HK:2245
Lygend Resources & Technology Co., Ltd. Class H
10.52
4.59
77.40%
HK:1370
Aowei Holding Limited
0.28
-0.20
-41.67%
HK:0601
Rare Earth Magnesium Technology Group Holdings Ltd.
0.07
-0.01
-16.09%

China Rare Earth Holdings Corporate Events

China Rare Earth Holdings Strengthens Audit Oversight
Jul 4, 2025

China Rare Earth Holdings Limited has outlined the terms of reference for its Audit Committee, emphasizing the importance of independent oversight in its governance structure. The committee’s composition and procedures are designed to ensure rigorous financial oversight and compliance with Hong Kong Stock Exchange listing rules, potentially enhancing stakeholder confidence in the company’s financial practices.

China Rare Earth Holdings Enhances Governance with New Nomination Committee
Jul 4, 2025

China Rare Earth Holdings Limited has announced the establishment of a Nomination Committee within its Board of Directors. This committee, formed to oversee the nomination procedures for directors, includes a majority of independent non-executive directors and aims to enhance board diversity and governance. The committee’s formation is expected to strengthen the company’s governance framework and ensure a more structured approach to director appointments, potentially impacting the company’s strategic direction and stakeholder confidence.

China Rare Earth Holdings Establishes Remuneration Committee
Jul 4, 2025

China Rare Earth Holdings Limited has announced the establishment of a Remuneration Committee to oversee and set policies on executive directors’ remuneration. This move is aimed at ensuring competitive remuneration packages to attract and retain directors, while maintaining transparency and fairness in the company’s governance structure.

China Rare Earth Holdings Announces Trading Halt Pending Inside Information
Jun 25, 2025

China Rare Earth Holdings Limited has announced a trading halt of its shares on the Hong Kong Stock Exchange as of June 18, 2025, pending the release of significant inside information. This pause in trading suggests potential impactful developments within the company, which could influence its market positioning and stakeholder interests.

China Rare Earth Holdings Appoints New Independent Director to Strengthen Governance
Jun 23, 2025

China Rare Earth Holdings Limited has appointed Prof. Yip Tze Wai Albert as an independent non-executive director, chairman of the audit committee, and a member of both the remuneration and nomination committees, effective June 23, 2025. Prof. Yip brings over 30 years of experience in banking and finance, enhancing the company’s governance and strategic oversight. His appointment is expected to strengthen the company’s compliance with listing rules and improve its industry positioning, potentially benefiting stakeholders through enhanced corporate governance and strategic direction.

China Rare Earth Holdings Announces Board Roles and Functions
Jun 23, 2025

China Rare Earth Holdings Limited has announced the roles and functions of its board members. The announcement highlights the leadership structure, with Mr. Jiang Quanlong and Ms. Guo Jinying serving as joint acting chairmen, and Mr. Jiang Dawei as the CEO, indicating a focus on strategic business development and financial planning.

China Rare Earth Holdings Announces AGM Results and Director Changes
Jun 20, 2025

China Rare Earth Holdings Limited announced the results of its Annual General Meeting held on June 20, 2025. The meeting saw the approval of several key resolutions, including the re-election of certain directors and the authorization for the board to manage share issuance and repurchase. However, resolutions to re-elect two directors were not passed. The outcomes of the AGM are expected to influence the company’s governance and strategic decisions moving forward.

China Rare Earth Holdings Outlines Board Roles and Strategic Focus
Jun 20, 2025

China Rare Earth Holdings Limited has announced the roles and functions of its board members, highlighting key responsibilities in business development, management, and strategic planning. This announcement underscores the company’s commitment to structured governance and strategic oversight, which may enhance its operational efficiency and market positioning.

China Rare Earth Holdings Completes Tungsten Bars Acquisition
Jun 16, 2025

China Rare Earth Holdings Limited has completed a significant transaction involving the acquisition of tungsten bars, which was finalized on 16 June 2025. This transaction involved the issuance of 400 million new shares, representing 14.3% of the company’s enlarged share capital, under a general mandate. The completion of this transaction is expected to impact the company’s shareholding structure, with a notable increase in shares held by Ms. Ong Shing Lan, the sole shareholder and director of the vendor involved in the transaction.

China Rare Earth Holdings Expands with Tungsten Bars Acquisition
Jun 11, 2025

China Rare Earth Holdings Limited has announced a significant acquisition of tungsten bars valued at HK$150,000,000, determined through a market-based valuation approach. This acquisition, involving the issuance of consideration shares under a general mandate, highlights the company’s strategic move to strengthen its position in the rare earth market by leveraging current market trends and pricing dynamics.

China Rare Earth Holdings Announces Tungsten Bars Acquisition
May 28, 2025

China Rare Earth Holdings has announced a discloseable transaction involving the acquisition of tungsten bars. The transaction, valued at HK$150,000,000, will be settled through the issuance of 400,000,000 consideration shares under the general mandate. This acquisition represents approximately 16.7% of the company’s issued share capital and is subject to reporting and announcement requirements under the Listing Rules.

China Rare Earth Holdings Announces Resignation of Joint Company Secretary
May 13, 2025

China Rare Earth Holdings Limited announced the resignation of Mr. Yu Tak Shing Eric as the joint company secretary, effective May 12, 2025. Mr. Yu’s departure is amicable, with no disagreements reported, and Ms. Tsui Mei Fung will continue as the sole company secretary. This change in the company’s secretarial team is not expected to impact its operations significantly, as the board expressed gratitude for Mr. Yu’s contributions and ensured continuity in governance.

China Rare Earth Holdings Completes Share Subscription Agreement
May 8, 2025

China Rare Earth Holdings Limited has announced the completion of a subscription agreement for new shares, which was finalized on May 8, 2025. The company has successfully issued 48,750,000 new shares at a price of HK$0.32 per share, altering its shareholding structure slightly, with the new subscriber now holding a 2% stake.

China Rare Earth Holdings Announces Strategic Share Subscription
Apr 30, 2025

China Rare Earth Holdings Limited has announced a supplemental agreement regarding the subscription of new shares under a general mandate. The subscription involves a global investment company led by Mr. Yu Jiang, who has extensive experience in corporate investment and equity financing. The subscription aims to leverage the strategic advice and operational resources of the Subscriber to enhance the company’s investment value and operational efficiency. The proceeds from the subscription will be used primarily for the company’s Hong Kong office expenses and other professional fees.

China Rare Earth Holdings Announces 2025 AGM and Key Resolutions
Apr 29, 2025

China Rare Earth Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 20, 2025, in Hong Kong. The meeting will address several key business items, including the re-election of directors and the authorization of the board to manage director remuneration and share allotments. The resolutions aim to ensure continuity in leadership and strategic flexibility in capital management, which could impact the company’s operational strategies and stakeholder interests.

China Rare Earth Holdings Announces Share Subscription to Raise HK$15.5 Million
Apr 16, 2025

China Rare Earth Holdings has announced a subscription agreement to issue 48,750,000 new shares at a price of HK$0.32 each, representing a discount to the recent trading prices. This move is expected to raise approximately HK$15.5 million in net proceeds, which will be used for the company’s working capital. The issuance will slightly increase the company’s share capital by about 2%, but the subscriber will not become a substantial shareholder.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025