IRC (1029) AI Stock Analysis

• Market Cap: HK$638.97M
• Dividend Yield: N/A
• Average Volume (3M): 453.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 2.05%
• EPS Growth: 27.51%
• Country: HK
• Employees: 1,670
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.62
• Shares Outstanding: 1,277,948,600
• 10 Day Avg. Volume: 644,013
• 30 Day Avg. Volume: 453,600
• PEG Ratio: 0.55
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 4.43
• P/FCF Ratio: -50.81
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.50 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's poor financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Business Model Strength

IRC's diversified revenue streams from software sales, licensing, and support services provide a stable income base, enhancing resilience against market fluctuations.

Strategic Partnerships

Partnerships with key industry players expand IRC's market presence and drive collaborative innovation, supporting long-term growth and competitive positioning.

High Gross Profit Margin

A high gross profit margin indicates strong pricing power and cost management, which can sustain profitability despite revenue challenges.

Negative Factors

Declining Revenue

The declining revenue trend suggests challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow indicates cash management issues and potential liquidity risks, which could constrain operational flexibility and investment capacity.

Negative Profitability

Ongoing net losses and negative profitability highlight operational inefficiencies and the need for strategic adjustments to achieve financial stability.

IRC Business Overview & Revenue Model

Company Description

IRC (1029) is a diversified company operating primarily in the industrial and resource sectors. It specializes in the exploration, development, and production of mineral resources, particularly iron ore and other metals. The company's core offerings include raw materials for the steel industry, with a focus on sustainability and efficient resource management. IRC also engages in several value-added services, including logistics and supply chain management, to enhance its operational efficiency and customer satisfaction.

How the Company Makes Money

IRC generates revenue through the sale of iron ore and other mineral resources, primarily targeting steel manufacturers and construction companies. The company's revenue model is built on direct sales contracts and long-term agreements with key clients in the steel industry, ensuring a steady income stream. Additionally, IRC benefits from partnerships with logistics providers to streamline its supply chain, thereby reducing operational costs and improving profit margins. The company also explores joint ventures and strategic alliances to expand its market presence and access new resources, further contributing to its earnings.

IRC Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. While the balance sheet shows reduced leverage, the negative cash flow and profitability metrics indicate operational inefficiencies and potential liquidity risks.

Income Statement

The income statement shows a concerning trend with declining revenues and profitability. Revenue decreased from $278.76M in 2022 to $221.16M in 2024, marking a negative growth trajectory. The gross profit margin remains relatively high at 81.4% in 2024, but the net profit margin is negative due to consistent net losses, with a net income of -$20.49M in 2024. The EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The balance sheet reflects a stable equity position with stockholders' equity at $316.14M in 2024. The debt-to-equity ratio improved to 0.14, indicating reduced leverage. However, the equity ratio decreased to 70.9%, suggesting a decline in asset efficiency. The return on equity is negative due to net losses, highlighting profitability concerns.

Cash Flow

Cash flow analysis reveals significant challenges, with operating cash flow turning negative at -$1.91M in 2024. Free cash flow also declined sharply to -$19.26M, indicating cash management issues. The free cash flow to net income ratio is negative, reflecting poor cash conversion efficiency. These factors suggest liquidity risks and operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.63M	221.16M	252.99M	278.76M	371.28M	224.59M
Gross Profit	25.75M	180.10M	196.55M	255.08M	344.26M	195.77M
EBITDA	19.99M	9.18M	-118.30M	46.89M	163.91M	71.13M
Net Income	-109.22M	-20.49M	-156.81M	-87.84M	134.07M	100.55M
Balance Sheet
Total Assets	277.24M	445.83M	451.04M	593.95M	709.15M	681.12M
Cash, Cash Equivalents and Short-Term Investments	29.88M	60.73M	56.56M	37.03M	52.13M	20.38M
Total Debt	28.54M	44.93M	67.38M	78.25M	116.29M	209.30M
Total Liabilities	62.73M	130.45M	162.06M	145.68M	192.77M	298.83M
Stockholders Equity	215.08M	316.14M	289.62M	448.61M	516.83M	382.71M
Cash Flow
Free Cash Flow	-20.88M	-19.26M	15.57M	17.29M	151.89M	58.16M
Operating Cash Flow	-609.00K	-1.91M	55.26M	31.74M	165.10M	63.97M
Investing Cash Flow	-21.48M	-15.88M	-15.06M	-14.12M	-13.75M	-1.08M
Financing Cash Flow	3.86M	16.14M	-19.25M	-30.54M	-119.90M	-45.47M

IRC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 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:1029, the sentiment is Neutral. The current price of 0.5 is above the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.53, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1029.

IRC 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%
3939	60 Neutral	HK$31.91B	31.53	36.46%	1.50%	31.24%	58.16%
1091	51 Neutral	HK$2.57B	-4.46	-14.35%	―	-31.35%	-71.37%
1370	51 Neutral	HK$596.90M	-1.75	-41.19%	―	-6.51%	41.00%
1029	41 Neutral	HK$638.97M	-0.73	-44.33%	―	2.05%	27.51%
0433	41 Neutral	HK$1.20B	-3.77	-4702.63%	―	0.41%	83.35%
0159	36 Underperform	HK$798.10M	-23.24	-7.49%	―	―	-164.29%

IRC Corporate Events

IRC Limited Announces Extraordinary General Meeting for Proposed Rights Issue

IRC Limited, a company incorporated in Hong Kong, has announced an Extraordinary General Meeting (EGM) to be held on December 16, 2025. The meeting will consider a proposed rights issue, which involves issuing new ordinary shares to existing shareholders. This initiative is part of a broader strategy to raise capital, with the involvement of Axioma Capital FZE LLC as the underwriter and First Shanghai Securities Limited as the placing agent. The rights issue aims to strengthen the company’s financial position and enhance its market presence.

IRC Company Announces HK$325.9 Million Rights Issue

IRC Company, listed on the Hong Kong Stock Exchange, has announced a proposed rights issue to raise approximately HK$325.9 million. The rights issue will offer one rights share for every two existing shares held, aiming to strengthen the company’s financial position. The proceeds will be used to support the company’s operations and strategic initiatives. The rights issue is non-fully underwritten, and arrangements have been made to place any unsubscribed shares to independent third parties.

IRC Limited Completes Disposal of Joint Venture Equity

IRC Limited has completed the disposal of its 46% equity interest in Heilongjiang Jianlong Vanadium Industries Co., Ltd, a joint venture company. The transaction, valued at approximately RMB32.2 million (US$4.5 million), marks IRC’s exit from this joint venture, potentially impacting its strategic positioning and financial portfolio.