CITIC Resources Holdings (1205) AI Stock Analysis

• Market Cap: HK$4.01B
• Dividend Yield: 6.84%
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.87
• Revenue Growth: 160.79%
• EPS Growth: -28.92%
• Country: HK
• Employees: 193
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.02
• Shares Outstanding: 7,857,727,000
• 10 Day Avg. Volume: 1,860,980
• 30 Day Avg. Volume: 2,029,798
• PEG Ratio: 1.27
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 7.18
• 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: 67 Neutral
• Price Target: HK$0.58 ▲(51.32% Upside)

The score is driven primarily by solid profitability and improving margins alongside a stable balance sheet, offset by weaker/uncertain cash flow quality and rising liabilities. Technicals add support with clear upward trend signals, while valuation is favorable due to a modest P/E and strong dividend yield.

Positive Factors

Improving profitability and margins

Sustained improvements in gross, EBIT and net margins indicate better cost management and pricing power across operations. This durable profitability supports reinvestment, dividend capacity and resilience to commodity cycles, strengthening long-term earnings quality.

Strong top-line growth

Very strong revenue expansion reflects growing production, sales reach and trading activity scale. Persistent top-line growth enhances fixed-cost absorption, funds capital expenditure and supports margin stability, improving the company's ability to invest in long-term resource development.

Stable balance sheet and high ROE

A healthy equity ratio and robust ROE signal efficient capital allocation and prudent capitalization. Manageable leverage provides financial flexibility to pursue projects and weather downturns, supporting sustainable investment and shareholder returns over multiple cycles.

Negative Factors

Inconsistent free cash flow

Irregular free cash flow and missing recent data undermine visibility on cash generation. Over time this hampers reliable funding for capex, dividends and debt service, increasing refinancing and allocation risk during commodity price volatility or operational setbacks.

Rising total liabilities

An upward trend in liabilities raises leverage risk and interest burden over the medium term. If liabilities grow faster than earnings or cash flow, financial flexibility and credit metrics could deteriorate, constraining future investments and increasing vulnerability in downturns.

Slight decline in EBITDA margin

A falling EBITDA margin signals emerging pressure on operational efficiency or rising input costs. If this trend persists it will reduce cash conversion and the buffer against commodity swings, pressuring reinvestment capacity and long-term competitiveness.

CITIC Resources Holdings Business Overview & Revenue Model

Company Description

CITIC Resources Holdings Limited, listed on the Hong Kong Stock Exchange under the stock code 1205, is a diversified investment holding company primarily engaged in the exploration, extraction, processing, and sale of resources such as oil, coal, and metals. The company operates in various sectors including natural resources and energy, focusing on the development and production of resources to meet global demand. CITIC Resources also engages in trading activities, providing a platform for their core products in international markets.

How the Company Makes Money

CITIC Resources generates revenue primarily through the extraction and sale of natural resources, including crude oil and coal, which form the backbone of its operations. The company has established significant production capabilities and engages in both domestic and international sales to maximize its market reach. Additionally, CITIC Resources benefits from trading its commodities, leveraging market fluctuations to optimize pricing. Key revenue streams include sales from its oil production ventures and coal mining operations, supplemented by trading activities that allow the company to capitalize on favorable market conditions. Partnerships with various global entities and strategic agreements enhance CITIC Resources' operational efficiency and market penetration, contributing positively to its earnings.

CITIC Resources Holdings Financial Statement Overview

Summary

Income statement trends are solid (improving gross margin, healthy net/EBIT margins and strong revenue growth), and the balance sheet is reasonably stable with strong ROE and manageable leverage. However, rising liabilities and notably weaker/uncertain cash flow quality (inconsistent free cash flow and missing 2024 cash flow details) meaningfully reduce the financial strength score.

Income Statement

CITIC Resources Holdings has demonstrated a solid improvement in its income statement metrics. The gross profit margin improved from 2023 to 2024, indicating efficient cost management. However, the revenue growth rate between 2023 and 2024 was substantial, suggesting strong top-line growth. The net profit margin and EBIT margin are both healthy, reflecting good overall profitability. Nevertheless, the EBITDA margin has slightly decreased, which may indicate some operational efficiency issues.

Balance Sheet

The balance sheet shows a stable financial position with a healthy equity ratio, indicating that the company is well-capitalized. The debt-to-equity ratio is manageable, but the company should be cautious of its debt levels to prevent potential risks. Return on Equity (ROE) is strong, reflecting effective use of shareholders' equity. However, the total liabilities have increased over time, which could pose a risk if not managed properly.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow has been inconsistent, with fluctuations over the years. Although the operating cash flow is usually positive, the absence of data for 2024 is a concern. The free cash flow to net income ratio is absent for 2024, making it difficult to assess the cash-generating efficiency. Overall, cash flow management appears to need improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.94B	9.50B	3.83B	5.87B	4.35B	2.85B
Gross Profit	521.63M	730.52M	1.00B	1.81B	1.19B	121.90M
EBITDA	572.43M	1.23B	1.32B	2.08B	1.43B	574.58M
Net Income	371.14M	572.58M	551.80M	1.34B	1.10B	-363.85M
Balance Sheet
Total Assets	15.93B	12.67B	11.62B	12.44B	12.70B	12.28B
Cash, Cash Equivalents and Short-Term Investments	4.42B	2.03B	1.48B	2.13B	1.93B	2.31B
Total Debt	4.36B	2.01B	1.83B	2.64B	3.73B	4.90B
Total Liabilities	8.13B	4.46B	3.78B	4.67B	5.78B	6.51B
Stockholders Equity	7.66B	8.08B	7.76B	7.75B	6.94B	5.81B
Cash Flow
Free Cash Flow	466.67M	388.36M	742.25M	1.74B	731.52M	-256.78M
Operating Cash Flow	785.56M	783.13M	1.15B	2.25B	1.17B	124.20M
Investing Cash Flow	-1.80B	-513.77M	82.52M	-861.27M	-871.49M	929.59M
Financing Cash Flow	2.65B	-80.51M	-1.45B	-1.56B	-1.25B	-217.79M

CITIC Resources Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1205, the sentiment is Positive. The current price of 0.38 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.42, and below the 200-day MA of 0.39, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1205.

CITIC Resources Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2245	76 Outperform	HK$39.21B	15.51	24.57%	1.89%	60.77%	100.45%
3993	70 Outperform	$565.27B	24.54	27.23%	1.45%	-2.42%	38.68%
3939	70 Outperform	HK$55.10B	59.69	36.46%	1.32%	31.24%	58.16%
1205	67 Neutral	HK$4.01B	11.23	4.82%	6.84%	160.79%	-28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9696	52 Neutral	HK$98.73B	-37.03	-4.63%	2.80%	-39.59%	69.00%
1091	44 Neutral	HK$2.25B	-3.90	-14.35%	―	-31.35%	-71.37%

CITIC Resources Holdings Corporate Events

CITIC Resources Nets US$247 Million from Major Sale of Alcoa Stake

CITIC Resources Holdings has executed a major disposal of part of its stake in US-based aluminium producer Alcoa, with wholly owned subsidiary CRA selling 3,816,582 Alcoa shares, equivalent to about 1.45% of Alcoa’s issued share capital, on the New York Stock Exchange for approximately US$247 million (around HK$1.93 billion) before costs at an average price of US$64.75 per share. The transaction, which qualifies as a major disposal under Hong Kong listing rules, triggered reporting and shareholder approval requirements, but the company secured written consent from its controlling shareholders representing about 59.12% of its issued share capital, allowing it to dispense with a general meeting; trading in CITIC Resources’ shares, temporarily suspended pending this announcement, will resume on 16 January 2026, and a circular providing further information on the disposal will be sent to shareholders for information only by early February, underscoring a significant capital recycling move from its previously disclosed Alcoa position.

The most recent analyst rating on (HK:1205) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CITIC Resources Holdings stock, see the HK:1205 Stock Forecast page.

CITIC Resources Halts Trading Ahead of Major Transaction Announcement

CITIC Resources Holdings has requested a halt in trading of its shares on the Hong Kong Stock Exchange from 9:00 a.m. on 15 January 2026 as it prepares to release an announcement containing inside information related to a major transaction under Hong Kong listing rules. The pending disclosure, classified as a major transaction under Chapter 14, signals a potentially significant corporate development that could affect the company’s asset base, strategic direction and valuation, and will be closely watched by investors and other stakeholders once details are made public.

The most recent analyst rating on (HK:1205) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CITIC Resources Holdings stock, see the HK:1205 Stock Forecast page.

CITIC Resources Warns of 60–70% Profit Slump for 2025 on Lower Oil Prices and Higher Costs

CITIC Resources Holdings has issued a profit warning, advising shareholders and investors that its unaudited consolidated profit attributable to shareholders for the year ending 31 December 2025 is expected to fall to approximately HK$170 million to HK$230 million, a decline of about 60% to 70% from 2024. The company attributes the anticipated sharp drop primarily to a significant decrease in the average selling price of crude oil, higher raw material costs—especially alumina for its Portland Aluminium Smelter—loss of profit contribution following its exit from Alumina Limited in July 2024, and reduced earnings from a joint venture in oil and bitumen due to lower crude prices. Management stressed that the figures are based on preliminary unaudited accounts and remain subject to year-end impairment assessments, urging investors to exercise caution ahead of the full-year results expected by end-March 2025.

The most recent analyst rating on (HK:1205) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CITIC Resources Holdings stock, see the HK:1205 Stock Forecast page.

CITIC Resources Holdings Appoints New Independent Director

CITIC Resources Holdings Limited has announced the appointment of Professor Lin Chen as an independent non-executive director and a member of the audit committee, effective from December 5, 2025. Prof. Lin brings over 20 years of experience in finance and holds significant positions in various financial and academic institutions, which may enhance the company’s governance and strategic oversight.

The most recent analyst rating on (HK:1205) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CITIC Resources Holdings stock, see the HK:1205 Stock Forecast page.

CITIC Resources Holdings Announces Board Composition and Committee Roles

CITIC Resources Holdings Limited has announced the composition of its board of directors and their respective roles within the company’s committees. This announcement highlights the leadership structure and governance framework of the company, which is crucial for maintaining transparency and effective management. The board includes a mix of executive, non-executive, and independent non-executive directors, with specific roles assigned in the audit, remuneration, nomination, and risk management committees. This structured governance is expected to enhance the company’s strategic decision-making and risk management capabilities, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:1205) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on CITIC Resources Holdings stock, see the HK:1205 Stock Forecast page.