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Tibet Water Resources Ltd. (HK:1115)
:1115
Hong Kong Market

Tibet Water Resources (1115) AI Stock Analysis

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HK

Tibet Water Resources

(1115)

Rating:41Neutral
Price Target:
Tibet Water Resources' overall stock score is driven down by significant financial performance issues, including declining revenues, profitability, and cash flow challenges. The technical analysis further supports a bearish outlook, while valuation metrics highlight potential financial distress. The company's stability is compromised, necessitating strategic improvements for future stability.

Tibet Water Resources (1115) vs. iShares MSCI Hong Kong ETF (EWH)

Tibet Water Resources Business Overview & Revenue Model

Company DescriptionTibet Water Resources Ltd., an investment holding company, manufactures fast-consuming beverages in the People's Republic of China. It operates in two segments, Water and Beer. The Water segment manufactures and sells a range of water products through wholesales under the 5100 Glacial Water, Highland Barley Beer, Zhuoma Spring, and Gesang Spring brand names; sells raw materials and consumables to associates and third parties; leases production lines and a plant to associates; and provides lending services to third parties in Hong Kong with relevant license. The Beer segment offers various beer products through wholesales under the Tibet Green Barley Beer brand name. The company also engages in the marketing, promotion, distribution, and retailing of water products; and investment in culture, entertainment, consumer product, retail business, and related industries. It sells its products through retail outlets, hotels, bars, restaurants, supermarkets, and convenience, as well as through e-commerce platforms. The company was formerly known as Tibet 5100 Water Resources Holdings Ltd. and changed its name to Tibet Water Resources Ltd. in December 2015. Tibet Water Resources Ltd. was founded in 2006 and is headquartered in Admiralty, Hong Kong.
How the Company Makes MoneyTibet Water Resources Ltd. generates revenue through the sale of its bottled water and other beverage products. The company capitalizes on its brand's association with purity and quality, utilizing the natural water sources of the Tibetan Plateau. Key revenue streams include domestic sales within China and exports to international markets, where the demand for premium and mineral-rich bottled water is increasing. The company may also have strategic partnerships with distributors and retailers to enhance its market reach, though specific partnership details are not available. Additionally, Tibet Water Resources might engage in marketing and promotional activities to raise brand awareness and drive sales.

Tibet Water Resources Financial Statement Overview

Summary
Tibet Water Resources faces significant financial challenges characterized by shrinking revenues and profitability. Income statement trends are concerning with declining revenues and increasing net losses. While the balance sheet is relatively stable with a moderate debt-to-equity ratio, cash flow issues and operational inefficiencies pose long-term risks. Overall, strategic improvements are needed to enhance revenue generation and cost management.
Income Statement
35
Negative
The income statement shows a concerning trend with declining revenues and increasing net losses over the years. The gross profit margin has been decreasing, and the company has been unable to generate positive EBIT or EBITDA margins in recent years. Revenue growth is negative, indicating a shrinking market share or operational challenges.
Balance Sheet
60
Neutral
The balance sheet reveals a relatively stable equity position, despite declining profitability. The debt-to-equity ratio is moderate, showing a balanced approach to leveraging debt, but there is concern over decreasing stockholders' equity. The company's equity ratio is healthy, indicating strong asset backing.
Cash Flow
40
Negative
The cash flow statement shows variability in free cash flow, with negative trends in recent periods. Operating cash flow is minimal or negative, indicating operational inefficiencies. The company struggles to convert net income into cash, affecting its financial flexibility.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
225.81M314.43M311.95M456.13M492.88M
Gross Profit
61.49M77.61M90.21M190.34M215.04M
EBIT
-89.02M-83.39M-83.72M37.69M67.64M
EBITDA
-48.84M-254.27M-25.00M108.75M149.52M
Net Income Common Stockholders
-573.95M-352.87M-102.47M46.95M16.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.29B66.11M89.91M78.14M258.09M
Total Assets
3.51B3.99B4.14B4.15B4.15B
Total Debt
611.01M758.83M761.48M765.86M911.97M
Net Debt
489.24M748.18M703.34M712.04M847.22M
Total Liabilities
1.13B1.13B1.28B1.32B1.43B
Stockholders Equity
2.38B2.86B2.86B2.83B2.72B
Cash FlowFree Cash Flow
0.00-306.44M81.06M76.09M80.57M
Operating Cash Flow
0.00-292.35M86.56M82.16M86.68M
Investing Cash Flow
0.00-56.34M-208.57M11.02M-440.04M
Financing Cash Flow
0.00312.20M127.21M-104.13M-97.42M

Tibet Water Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.30
Price Trends
50DMA
0.30
Negative
100DMA
0.32
Negative
200DMA
0.33
Negative
Market Momentum
MACD
<0.01
Negative
RSI
50.54
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1115, the sentiment is Negative. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and below the 200-day MA of 0.33, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.54 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 Negative sentiment for HK:1115.

Tibet Water Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
HK$8.73B9.3513.82%5.10%-2.10%0.33%
76
Outperform
HK$441.99B33.6239.94%2.09%-1.32%-1.49%
65
Neutral
$8.92B15.034.68%6.11%3.59%-2.49%
61
Neutral
HK$3.37B22.497.83%3.85%-11.58%-35.85%
41
Neutral
HK$1.39B-21.94%-29.75%-47.01%
$1.97B19.9511.06%1.30%
44
Neutral
HK$259.10M-5.09%-7.73%60.42%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1115
Tibet Water Resources
0.30
0.00
0.00%
HK:6868
Tenfu (Cayman) Holdings Co
3.24
-1.21
-27.19%
YNAJF
Yantai North Andre Juice Co
2.39
1.21
102.54%
HK:9633
Nongfu Spring Co., Ltd. Class H
38.40
-0.80
-2.04%
HK:1446
Hung Fook Tong Group Holdings Ltd
0.40
0.22
122.22%
HK:0506
China Foods Limited
3.11
0.24
8.36%

Tibet Water Resources Corporate Events

Tibet Water Resources Ltd. Updates Share Options Grant to Distributors
Apr 14, 2025

Tibet Water Resources Ltd. has announced a supplemental update regarding the grant of share options to its service providers. A total of 203,959,400 share options were allocated to various distributors, with none of the grantees being directors, chief executives, or substantial shareholders of the company. This move is aimed at strengthening the company’s distribution network and enhancing its market presence.

Tibet Water Resources Reports Increased Losses Amid Revenue Decline
Mar 28, 2025

Tibet Water Resources Ltd. reported a significant decline in its financial performance for the year ended December 31, 2024, with a 28.2% drop in revenue and a 62.7% increase in losses attributable to owners. The company’s operating loss increased by 6.8%, and the loss per share rose by 44.0%. Despite a slight improvement in gross profit margin, the overall financial results indicate challenges in maintaining profitability, impacting stakeholders and the company’s market positioning.

Tibet Water Resources Issues Profit Warning with Increased Net Loss
Mar 25, 2025

Tibet Water Resources Ltd. has issued a profit warning, indicating an expected net loss of approximately RMB580 million for the year ending December 31, 2024, compared to a net loss of RMB350 million in the previous year. This increase in net loss is largely due to significant impairment losses on investments, which are non-cash items and do not affect the company’s cash flow immediately. The results are based on preliminary unaudited assessments and may be subject to adjustments.

Tibet Water Resources Completes HK$138 Million Convertible Bonds Issue
Mar 18, 2025

Tibet Water Resources Ltd. announced the completion of its issuance of 8% convertible bonds with a principal amount of HK$138,000,000 due in 2025. The bonds issue was completed on March 18, 2025, with no cash proceeds received as the subscription price was fully set off, impacting the company’s financial strategy and potentially its market positioning.

Tibet Water Resources Schedules Board Meeting for Annual Results and Dividend Discussion
Mar 18, 2025

Tibet Water Resources Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss the audited consolidated annual results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and potential returns on investment.

Tibet Water Resources Announces HK$138 Million Convertible Bond Issue
Feb 13, 2025

Tibet Water Resources Ltd. has announced the proposed issue of 8% convertible bonds amounting to HK$138,000,000, maturing in 2025. The bonds, upon full conversion at a price of HK$0.345, will convert into 400,000,000 shares, affecting the company’s share capital by approximately 8.03%. The company plans to list these conversion shares on the stock exchange and has utilized its general mandate for this issue, demonstrating strategic financial planning to enhance its capital structure and potentially strengthen its market position.

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.