Huili Resources (Group) Limited (1303) AI Stock Analysis

• Market Cap: HK$399.60M
• Dividend Yield: N/A
• Average Volume (3M): 52.40K
• Price to Earnings (P/E): 6.0
• Beta (1Y): -0.03
• Revenue Growth: 39.98%
• EPS Growth: -73.77%
• Country: HK
• Employees: 999
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): <0.01
• Shares Outstanding: 2,103,141,400
• 10 Day Avg. Volume: 21,400
• 30 Day Avg. Volume: 52,400
• PEG Ratio: -0.16
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 7.31
• 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: 66 Neutral
• Price Target: HK$0.27 ▲(26.19% Upside)

Huili Resources' strong financial performance, particularly in revenue growth and balance sheet health, is a key strength. However, technical indicators suggest caution due to potential overbought conditions, and cash flow volatility remains a concern. The stock's valuation is attractive, but the lack of dividend yield may deter some investors.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its products and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Gross Profit Margin

Healthy gross profit margins reflect efficient operations and cost control, which can sustain profitability even in fluctuating market conditions.

Negative Factors

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to reinvest in its operations and meet financial obligations, affecting long-term growth.

Absence of Free Cash Flow

Lack of free cash flow limits the company's capacity to fund new projects or return capital to shareholders, impacting future financial flexibility.

Decline in EBIT and EBITDA Margins

Decreasing EBIT and EBITDA margins may indicate rising costs or inefficiencies, potentially reducing profitability if not addressed.

Huili Resources (Group) Limited Business Overview & Revenue Model

Company Description

Huili Resources (Group) Limited, an investment holding company, engages in mining, processing, and selling mineral ores in the People's Republic of China. The company operates through three segments: Mining, Trading Business, and Financial Services. The Mining segment mines, processed, and sells gold, nickel, copper, lead, and zinc; and holds three exploration permits in Xinjiang. The Trading segment engages in the trading of coal. The Financial Services segment provides finance services. It also provides management and investment consultation; and engineering services. The company was formerly known as Realty Resources (Group) Limited and changed its name to Huili Resources (Group) Limited in May 2010. The company was incorporated in 2010 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Huili Resources generates revenue through multiple streams, primarily from the sale of mined minerals such as copper, zinc, and lead. The company engages in both direct sales and trading activities, allowing it to capitalize on fluctuating market prices for these commodities. Additionally, Huili Resources may enter into strategic partnerships with other mining companies or industries, enhancing its supply chain and distribution channels. The company also focuses on cost management and efficiency in its mining operations to maximize profit margins. Market demand for minerals, along with effective resource management, plays a significant role in driving the company's earnings.

Huili Resources (Group) Limited Financial Statement Overview

Summary

Huili Resources demonstrates strong revenue growth and a healthy balance sheet with low leverage, but faces challenges in maintaining strong cash flows. Continued focus on cash flow management will be essential to support future growth and financial stability.

Income Statement

Huili Resources shows a strong revenue growth trajectory with a significant increase from 2023 to 2024. The gross profit margin is healthy, indicating efficient production and cost management. However, there is a slight decline in EBIT and EBITDA margins, suggesting some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is robust with a high equity ratio, reflecting strong shareholder equity relative to total assets. The debt-to-equity ratio is low, indicating minimal leverage and financial risk. Return on equity is positive, showing effective use of equity to generate profits.

Cash Flow

Cash flow statements show volatility, with operating cash flows not consistently positive. The absence of free cash flow in 2024 indicates potential issues in cash generation. The company needs to stabilize cash flow to improve its financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	4.03B	2.85B	2.02B	1.47B	141.22M
Gross Profit	146.18M	222.74M	211.41M	211.83M	10.65M	4.25M
EBITDA	86.20M	160.32M	219.22M	226.23M	-9.60M	-6.87M
Net Income	60.98M	160.29M	167.61M	180.84M	-16.76M	-16.74M
Balance Sheet
Total Assets	2.36B	2.67B	1.58B	868.40M	558.59M	468.78M
Cash, Cash Equivalents and Short-Term Investments	896.94M	656.38M	483.46M	384.31M	235.87M	169.14M
Total Debt	144.74M	147.82M	12.37M	2.95M	1.92M	664.00K
Total Liabilities	1.28B	1.61B	785.71M	296.65M	166.27M	59.16M
Stockholders Equity	1.08B	1.06B	788.04M	572.52M	393.59M	410.82M
Cash Flow
Free Cash Flow	0.00	96.97M	88.27M	122.01M	73.43M	-38.42M
Operating Cash Flow	0.00	150.95M	101.49M	136.22M	73.43M	-38.42M
Investing Cash Flow	0.00	121.00K	7.99M	-80.00K	-5.00M	-8.89M
Financing Cash Flow	0.00	31.09M	-3.83M	-1.85M	-1.66M	-2.01M

Huili Resources (Group) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 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:1303, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 21.15 is Positive, neither overbought nor oversold. The STOCH value of 48.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1303.

Huili Resources (Group) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1229	68 Neutral	HK$168.38M	7.69	9.86%	―	42.60%	-67.94%
1303	66 Neutral	HK$399.60M	6.05	4.33%	―	39.98%	-73.77%
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%
6885	44 Neutral	HK$663.92M	-1.95	-9.96%	―	-26.97%	-76.57%
1738	42 Neutral	HK$175.33M	-0.26	―	―	-42.18%	-3.23%
1393	41 Neutral	HK$285.53M	-0.50	-48.57%	―	15.80%	51.68%