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Nan Nan Resources Enterprise Limited (HK:1229)
:1229
Hong Kong Market

Nan Nan Resources Enterprise Limited (1229) AI Stock Analysis

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HK

Nan Nan Resources Enterprise Limited

(1229)

Rating:59Neutral
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 (1229) vs. iShares MSCI Hong Kong ETF (EWH)

Nan Nan Resources Enterprise Limited Business Overview & Revenue Model

Company DescriptionNan 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 MoneyNan 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
45
Neutral
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
60
Neutral
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
30
Negative
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue240.17M116.07M239.89M300.24M130.52M127.99M
Gross Profit131.56M43.14M133.83M162.60M54.61M52.21M
EBITDA128.59M65.46M4.82M122.86M9.89M-1.14M
Net Income68.25M39.09M-58.33M66.59M-2.94M-25.31M
Balance Sheet
Total Assets624.53M524.99M583.61M616.27M560.19M519.33M
Cash, Cash Equivalents and Short-Term Investments250.15M189.31M234.11M260.75M204.08M235.13M
Total Debt232.94M209.44M379.78M306.55M322.93M303.12M
Total Liabilities429.51M353.22M456.30M392.08M410.61M366.26M
Stockholders Equity194.75M171.40M125.45M221.54M146.31M150.55M
Cash Flow
Free Cash Flow120.44M-33.45M23.77M78.26M-35.05M-129.05M
Operating Cash Flow135.06M-1.56M66.14M125.31M37.03M-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
Neutral
Last Price0.24
Price Trends
50DMA
0.25
Negative
100DMA
0.20
Positive
200DMA
0.18
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
40.57
Neutral
STOCH
11.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1229, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.25, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1229.

Nan Nan Resources Enterprise Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$15.14B9.916.38%5.21%4.16%-67.19%
59
Neutral
HK$174.51M2.6335.12%31.05%-66.07%
$17.42M
$15.10M0.05
DE3H3
€31.88M-44.69%
HK$79.80M-35.91%
HK$84.72M-3.24%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1229
Nan Nan Resources Enterprise Limited
0.25
0.09
56.25%
FSHRF
Feishang Anthracite Resources
0.01
-0.01
-50.00%
MOAEF
Mongolia Energy
0.06
-0.04
-40.00%
DE:3H3
Hidili Industry International Development Limited
0.05
0.04
400.00%
HK:0065
Grand Ocean Advanced Resources Co., Ltd.
0.40
-0.90
-69.23%
HK:0704
Huscoke Holdings Limited
0.10
0.01
11.11%
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.Date of analysis: Apr 29, 2025