Nan Nan Resources Enterprise Limited (1229) AI Stock Analysis

• Market Cap: HK$210.48M
• Dividend Yield: N/A
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.53
• Revenue Growth: 31.05%
• EPS Growth: -66.07%
• Country: HK
• Employees: 149
• Sector: Energy
• Sector Strength: 55
• Industry: Coal
• EPS (TTM): 0.06
• Shares Outstanding: 765,373,600
• 10 Day Avg. Volume: 795,600
• 30 Day Avg. Volume: 1,898,866
• PEG Ratio: 0.02
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• 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

• Rating: 59 Neutral
• Price Target: ―

The overall score reflects significant financial challenges, with declining revenue and operational inefficiencies being major concerns. While the technical analysis shows positive momentum, the potential for reversal due to overbought conditions is noted. The stock's valuation is a strong point, appearing undervalued with a low P/E ratio. These mixed signals result in a moderate overall score.

Nan Nan Resources Enterprise Limited Business Overview & Revenue Model

Company Description

Nan Nan Resources Enterprise Limited (1229) is a Hong Kong-based investment holding company principally engaged in the mining and sale of coal. The company operates through its subsidiaries and is primarily involved in the extraction, production, and distribution of coal products. It focuses on the energy sector, providing essential raw materials for power generation and industrial use.

How the Company Makes Money

Nan Nan Resources Enterprise Limited generates revenue primarily through the sale of coal extracted from its mining operations. The company owns and operates coal mines, which produce thermal coal for electricity generation and industrial purposes. The company's revenue model relies on the efficient extraction and sale of coal to both domestic and international markets. Key revenue streams include long-term supply contracts with power companies and industrial clients requiring coal for energy production. Additionally, the company may engage in strategic partnerships or joint ventures to enhance operational efficiency and expand its market reach. Factors such as coal prices, demand for energy, and regulatory environments significantly influence the company's earnings.

Nan Nan Resources Enterprise Limited Financial Statement Overview

Summary

Nan Nan Resources Enterprise Limited is facing challenges in revenue growth and operational efficiency, reflected in declining income statement metrics. The balance sheet shows some improvement in equity but remains leveraged. Cash flow issues highlight the need for better cash management and control over capital expenditures. Overall, the company faces significant financial pressures that need addressing.

Income Statement

The company experienced a significant decline in revenue from 2023 to 2024, with total revenue decreasing by over 50%. Gross profit margin also fell, while the net income turned positive. However, EBIT and EBITDA margins were weak, indicating financial difficulties in operational efficiency and profitability.

Balance Sheet

The balance sheet shows a reduction in total debt and an increase in stockholders' equity from 2023 to 2024, improving the debt-to-equity ratio. The equity ratio remains moderate, but the company's leverage is still relatively high, presenting potential risks.

Cash Flow

The cash flow statement indicates negative free cash flow growth due to substantial capital expenditures and declining operating cash flow. The free cash flow to net income ratio is poor, highlighting cash management concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
240.17M	116.07M	239.89M	300.24M	130.52M	127.99M
	Gross Profit
131.56M	43.14M	133.83M	162.60M	54.61M	52.21M
	EBIT
66.45M	-19.63M	83.54M	119.16M	19.46M	2.61M
	EBITDA
128.59M	65.46M	4.82M	122.86M	9.89M	-1.14M
	Net Income Common Stockholders
68.25M	39.09M	-58.33M	66.59M	-2.94M	-25.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
250.15M	189.31M	234.11M	260.75M	204.08M	235.13M
	Total Assets
624.53M	524.99M	583.61M	616.27M	560.19M	519.33M
	Total Debt
232.94M	209.44M	379.78M	306.55M	322.93M	303.12M
	Net Debt
-17.20M	20.14M	145.66M	45.80M	118.85M	68.00M
	Total Liabilities
429.51M	353.22M	456.30M	392.08M	410.61M	366.26M
	Stockholders Equity
194.75M	171.40M	125.45M	221.54M	146.31M	150.55M
Cash Flow		Free Cash Flow
120.44M	-33.45M	23.77M	78.26M	-35.05M	-129.05M
	Operating Cash Flow
135.06M	-1.56M	66.14M	125.31M	37.03M	-63.97M
	Investing Cash Flow
-71.05M	-29.15M	-42.38M	-47.05M	-72.08M	-32.33M
	Financing Cash Flow
-1.69M	-5.49M	-32.93M	-27.52M	-11.75M	-7.53M

Nan Nan Resources Enterprise Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1229, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.22, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 86.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1229.

Nan Nan Resources Enterprise Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2600	80 Outperform	$120.30B	6.53	20.63%	3.48%	2.84%	―
1052	71 Outperform	$6.32B	8.88	5.60%	7.01%	-4.34%	-16.07%
3311	71 Outperform	$65.18B	6.75	14.62%	5.64%	1.21%	2.15%
0393	67 Neutral	HK$1.86B	31.03	2.39%	9.35%	10.83%	41.96%
1164	63 Neutral	$16.72B	47.56	13.49%	0.20%	17.13%	-31.19%
1229	59 Neutral	HK$210.48M	3.25	42.77%	―	31.05%	-66.07%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%