Nan Nan Resources Enterprise Limited (1229) AI Stock Analysis

• Market Cap: HK$168.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.55
• Revenue Growth: 42.60%
• EPS Growth: -67.94%
• Country: HK
• Employees: 149
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): >-0.01
• Shares Outstanding: 765,373,600
• 10 Day Avg. Volume: 2,011,800
• 30 Day Avg. Volume: 1,176,400
• PEG Ratio: 0.02
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 1.79
• 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: 68 Neutral
• Price Target: HK$0.50 ▲(127.27% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. The company's robust revenue growth and profitability are offset by cash flow challenges. Technical indicators suggest a lack of strong momentum, which could impact short-term price movements. The stock's low P/E ratio highlights its undervaluation, presenting a potential opportunity for investors.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a positive market position and increasing demand for its mineral resources, supporting long-term business expansion.

Profitability

Strong profit margins demonstrate effective cost management and pricing power, contributing to sustainable financial health and competitive advantage.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, allowing for greater investment in growth opportunities.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth suggests difficulties in funding operations and investments, potentially hindering long-term growth and financial flexibility.

Operating Efficiency Volatility

Fluctuating operating margins indicate potential instability in cost control and revenue generation, which could impact profitability and growth consistency.

Moderate Debt Reliance

Moderate reliance on debt could pose risks if not managed carefully, potentially affecting the company's ability to withstand economic downturns.

Nan Nan Resources Enterprise Limited Business Overview & Revenue Model

Company Description

Nan Nan Resources Enterprise Limited, an investment holding company, mines and sells coal in the Mainland China, Hong Kong, Singapore, the United Kingdom, and Malaysia. The company operates through three segments: Coal Mining Business, Renewable Energy Business, and IT Services Business. It owns mining right in the Kaiyuan Open Pit Coal Mine and an exploration right in the Zexu Open Pit Coal Mine in Xinjiang. The company also provides renewable energy solutions and solar farm development services. In addition, it provides information technology outsourcing, consultancy, and technical services, as well as sells IT hardware products. The company was formerly known as International Resources Enterprise Limited and changed its name to Nan Nan Resources Enterprise Limited in September 2011. Nan Nan Resources Enterprise Limited is headquartered in Admiralty, Hong Kong. Nan Nan Resources Enterprise Limited is a subsidiary of Ascent Goal Investments Limited.

How the Company Makes Money

Nan Nan Resources Enterprise Limited generates revenue primarily through the sale of extracted minerals and resources. The company's revenue model is centered around mining operations, where it earns income from the production and sale of minerals to industrial clients. Key revenue streams include the sale of metallic and non-metallic minerals, which are utilized in manufacturing, construction, and other industrial applications. Additionally, strategic partnerships with other mining companies and industrial manufacturers help enhance its market reach and operational efficiency, further contributing to its earnings. The company may also benefit from fluctuations in commodity prices, which can significantly impact its profitability.

Nan Nan Resources Enterprise Limited Financial Statement Overview

Summary

Nan Nan Resources Enterprise Limited demonstrates strong revenue growth and profitability, with improved leverage management. However, cash flow challenges and potential volatility in operating efficiency highlight areas for improvement. The company is on a positive trajectory but must address cash flow issues to sustain long-term growth.

Income Statement

Nan Nan Resources Enterprise Limited shows strong revenue growth with a 36.17% increase in the latest year, indicating a positive trajectory. The gross profit margin of 46.94% and net profit margin of 22.19% reflect solid profitability. However, the EBIT and EBITDA margins have seen fluctuations, suggesting potential volatility in operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.86, indicating better leverage management compared to previous years. Return on equity is robust at 30%, showcasing effective utilization of shareholder funds. However, the equity ratio suggests moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has improved significantly, but free cash flow growth is negative at -50.25%, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio of 0.48 suggests moderate cash conversion efficiency, while the free cash flow to net income ratio of 0.38 indicates room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	342.50M	327.05M	116.07M	239.89M	300.24M	130.52M
Gross Profit	132.64M	153.53M	43.14M	133.83M	162.60M	54.61M
EBITDA	102.28M	155.29M	65.46M	4.82M	122.86M	9.89M
Net Income	21.88M	72.59M	39.09M	-58.33M	66.59M	-2.94M
Balance Sheet
Total Assets	707.77M	643.32M	524.99M	583.61M	616.27M	560.19M
Cash, Cash Equivalents and Short-Term Investments	282.34M	248.22M	189.31M	234.11M	260.75M	204.08M
Total Debt	257.26M	264.81M	209.44M	379.78M	306.55M	322.93M
Total Liabilities	460.05M	402.68M	353.22M	456.30M	392.08M	410.61M
Stockholders Equity	248.92M	241.95M	171.40M	125.45M	221.54M	146.31M
Cash Flow
Free Cash Flow	82.21M	59.92M	-33.45M	23.77M	78.26M	-35.05M
Operating Cash Flow	108.97M	156.29M	-1.56M	66.14M	125.31M	37.03M
Investing Cash Flow	-96.00M	-94.88M	-29.15M	-42.38M	-47.05M	-72.08M
Financing Cash Flow	14.76M	-938.00K	-5.49M	-32.93M	-27.52M	-11.75M

Nan Nan Resources Enterprise Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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:1229, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.24, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 43.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1229	68 Neutral	HK$168.38M	7.73	9.86%	―	42.60%	-67.94%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0276	46 Neutral	HK$139.21M	-0.08	―	―	-38.71%	-193.94%
0704	46 Neutral	HK$72.62M	-1.26	-3.24%	―	―	―
0065	45 Neutral	HK$79.80M	-1.30	-31.67%	―	-20.97%	-213.53%
1738	42 Neutral	HK$175.33M	-0.24	―	―	-42.18%	-3.23%
1393	41 Neutral	HK$285.53M	-0.49	-48.57%	―	15.80%	51.68%

Nan Nan Resources Enterprise Limited Corporate Events

Nan Nan Resources Reports Interim Loss Amid Rising Costs

Nan Nan Resources Enterprise Limited reported its unaudited interim results for the six months ending September 30, 2025, revealing a decrease in gross profit compared to the previous year. Despite an increase in revenue, the company experienced a net loss for the period, primarily due to higher costs of services and goods sold, increased selling and distribution expenses, and a significant loss on the fair value change of convertible bonds. The overall comprehensive income for the period was positive, attributed to favorable exchange differences, although it was lower than the previous year’s figures. This financial performance may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1229) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Nan Nan Resources Enterprise Limited stock, see the HK:1229 Stock Forecast page.

Nan Nan Resources Issues Profit Warning Amid Financial Downturn

Nan Nan Resources Enterprise Limited has issued a profit warning, indicating a significant financial downturn for the six months ending September 2025. The company expects to record a loss of up to HK$10 million, a stark contrast to the HK$47.1 million profit from the previous year. This downturn is attributed to a fair value loss on a convertible bond and decreased gross profit due to rising sales costs and lower coal prices. The announcement advises caution for shareholders and potential investors as the financial results are still being finalized and have not been audited.

The most recent analyst rating on (HK:1229) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Nan Nan Resources Enterprise Limited stock, see the HK:1229 Stock Forecast page.