Newton Resources Ltd. (1231) AI Stock Analysis

• Market Cap: €872.00M
• Dividend Yield: N/A
• Average Volume (3M): 98.71K
• Price to Earnings (P/E): 131.6
• Beta (1Y): -0.29
• Revenue Growth: -41.26%
• EPS Growth: -110.87%
• Country: HK
• Employees: 33
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Steel
• EPS (TTM): 0.00
• Shares Outstanding: 4,000,000,000
• 10 Day Avg. Volume: 29,000
• 30 Day Avg. Volume: 98,706
• PEG Ratio: 13.72
• Price to Book (P/B): 111.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -162.23
• Enterprise Value/Market Cap: 4.00
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 49.37
• Enterprise Value/Ebitda: 38.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ―

Newton Resources Ltd.'s overall stock score is driven by its financial performance challenges, characterized by declining revenues and negative net income. Despite these challenges, the company maintains a stable balance sheet and has improved its cash flow. The technical analysis indicates short-term positive momentum, but valuation concerns persist due to negative profitability. The stock's performance is hindered primarily by its weak financials, with some support from technical indicators.

Newton Resources Ltd. Business Overview & Revenue Model

Company Description

Newton Resources Ltd. (1231) is a diversified investment holding company primarily engaged in the trading of iron ore and other commodities. The company operates within the natural resources sector, focusing on sourcing, trading, and distributing raw materials essential for industrial and manufacturing processes. Newton Resources aims to leverage its strategic partnerships and market insights to optimize its supply chain and expand its presence in the global commodities market.

How the Company Makes Money

Newton Resources Ltd. generates revenue through the trading and distribution of iron ore and other natural resources. The company sources these commodities from various suppliers and sells them to manufacturers and industrial clients, who use the raw materials for production purposes. The company benefits from its established relationships with suppliers and customers, allowing it to negotiate favorable terms and secure consistent supply and demand. Additionally, Newton Resources may engage in strategic partnerships and joint ventures to enhance its market position and explore new opportunities within the commodities sector. The company's earnings are influenced by fluctuations in commodity prices, demand from key industries, and the efficiency of its supply chain operations.

Newton Resources Ltd. Financial Statement Overview

Summary

Newton Resources Ltd. is struggling with profitability challenges, evidenced by declining revenues and a negative net income in 2024. While the balance sheet shows stable stockholders' equity and a manageable debt level, the reduction in total assets could pose growth challenges. Cash flow has improved with positive free cash flow, indicating liquidity strength, but operational issues persist.

Income Statement

Newton Resources Ltd. has experienced significant revenue fluctuations with a sharp decline from 2023 to 2024. The company reported a negative net income in 2024, reflecting profitability challenges. Gross profit margin and EBIT margin are relatively low, indicating pressure on the cost structure. However, the company managed a positive EBITDA margin, which suggests some operational efficiency despite overall financial challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a manageable level of leverage. Stockholders' equity remains stable, providing a solid equity base. The equity ratio is healthy, indicating a strong asset base relative to liabilities. However, the decrease in total assets over the years could indicate asset shrinkage, which may impact future growth.

Cash Flow

The cash flow statement reveals positive free cash flow in 2024, which is a positive indicator of liquidity. However, the operating cash flow to net income ratio signals potential cash flow management issues due to the negative net income. The company has improved its free cash flow position compared to previous years, which is a positive trend.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.76B	309.94M	526.12M	201.49M	292.87M	467.50M
	Gross Profit
70.73M	5.19M	9.95M	2.80M	5.40M	6.68M
	EBIT
22.29M	41.00K	3.16M	-1.48M	587.00K	2.63M
	EBITDA
36.49M	3.85M	7.85M	562.00K	-513.00K	2.92M
	Net Income Common Stockholders
16.69M	-287.00K	2.37M	-2.22M	-1.78M	831.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.42M	22.18M	22.42M	11.52M	14.50M	15.19M
	Total Assets
109.17M	71.41M	109.17M	60.87M	37.75M	135.68M
	Total Debt
14.66M	485.00K	14.66M	4.61M	5.45M	20.51M
	Net Debt
-7.76M	-21.69M	-7.76M	-6.91M	-9.05M	5.32M
	Total Liabilities
78.83M	41.43M	78.83M	32.89M	7.52M	103.63M
	Stockholders Equity
29.44M	29.13M	29.44M	27.07M	29.24M	31.07M
Cash Flow		Free Cash Flow
-65.44M	9.70M	-9.11M	-1.35M	15.67M	12.43M
	Operating Cash Flow
-65.44M	9.73M	-9.11M	-1.34M	15.85M	12.49M
	Investing Cash Flow
0.00	-31.00K	0.00	-6.00K	-179.00K	13.65M
	Financing Cash Flow
67.48M	-5.49M	9.37M	-1.60M	-16.36M	-23.95M

Newton Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1231, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 29.07 is Positive, neither overbought nor oversold. The STOCH value of 79.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1231.

Newton Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1398	78 Outperform	$2.64T	5.60	9.72%	5.15%	-3.41%	-0.73%
1052	71 Outperform	$6.32B	8.88	5.60%	7.02%	-4.34%	-16.07%
1208	69 Neutral	$42.49B	29.29	5.84%	―	2.70%	1493.33%
1205	63 Neutral	HK$3.30B	5.76	7.21%	5.95%	148.27%	3.85%
1164	60 Neutral	$18.01B	52.67	13.49%	0.13%	17.13%	-31.19%
1231	53 Neutral	€872.00M	131.58	-0.96%	―	-41.26%	-110.87%
Sector *	51 Neutral	$2.04B	-1.26	-21.09%	3.98%	2.91%	-30.49%

Newton Resources Ltd. Corporate Events

Newton Resources Ltd. Announces Annual General Meeting and Key Resolutions

Newton Resources Ltd. has announced its upcoming Annual General Meeting, scheduled for June 12, 2025, in Hong Kong. The meeting will address several key resolutions, including the re-election of directors, authorization of directors’ remuneration, and the re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval for mandates to repurchase shares and issue new shares, which could influence its market operations and shareholder value.

Newton Resources Ltd. Reports Financial Decline in 2024

Newton Resources Ltd. reported a significant decline in its financial performance for the fiscal year 2024, with revenue dropping from US$526.1 million in 2023 to US$309.9 million in 2024, resulting in a net loss of US$329,000 compared to a profit of US$2.4 million the previous year. The decrease in revenue and profit is attributed to higher cost of sales and reduced gross profit, impacting the company’s overall financial health and potentially affecting its market position and stakeholder confidence.