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

• Market Cap: HK$483.72M
• Dividend Yield: N/A
• Average Volume (3M): 52.40K
• Price to Earnings (P/E): 7.3
• 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$0.23 ▲(10.95% 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

Nearly 40% revenue growth and a described 'strong revenue growth trajectory' indicate expanding volumes or pricing power. Sustained top-line expansion supports reinvestment, scale benefits, and market share gains, providing durable growth headroom over the next months.

Balance Sheet Strength

A robust balance sheet with a high equity ratio and low leverage gives the company financial flexibility to fund capex, weather commodity cycles, and pursue strategic moves. This structural strength reduces solvency and refinancing risk over a multi-month horizon.

Gross Margin Efficiency

Healthy gross margins point to efficient mining and cost control. For a resources company, sustainable production efficiency preserves profitability across commodity cycles, supporting long-term cash generation and the ability to maintain operations during price weakness.

Negative Factors

Cash Flow Volatility

Volatile operating cash flows and no free cash flow in 2024 undermine cash conversion despite revenue gains. This weakens the firm’s capacity to self-fund capex or dividends and increases reliance on external financing, raising structural execution risk.

Margin Compression

A decline in EBIT and EBITDA margins signals rising operating pressures or cost inflation relative to revenue. If persistent, margin erosion reduces retained earnings for reinvestment, lowers resilience to price swings, and weakens long-term profitability sustainability.

Earnings Volatility (EPS)

A roughly 74% drop in EPS indicates meaningful earnings volatility or one-off impacts despite revenue growth. Persistently weak EPS impairs retained earnings, may signal dilution or margin issues, and limits the company's ability to demonstrate consistent earnings power over time.

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 shows strong revenue growth and a healthy balance sheet with low leverage. However, cash flow volatility and the absence of free cash flow in 2024 pose challenges to financial resilience.

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: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1303, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$156.90M	7.17	9.86%	―	42.60%	-67.94%
1303	66 Neutral	HK$483.72M	7.32	4.33%	―	39.98%	-73.77%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
6885	51 Neutral	HK$610.38M	-1.79	-9.96%	―	-26.97%	-76.57%
0276	46 Neutral	HK$139.21M	-0.08	―	―	-38.71%	-193.94%
1738	42 Neutral	HK$162.90M	-0.24	―	―	-42.18%	-3.23%
1393	41 Neutral	HK$280.92M	-0.49	-48.57%	―	15.80%	51.68%