China Metal Resources Utilization Ltd. (1636) AI Stock Analysis

• Market Cap: HK$291.30M
• Dividend Yield: N/A
• Average Volume (3M): 457.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -69.37%
• EPS Growth: -20.23%
• Country: HK
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): N/A
• Shares Outstanding: 448,155,730
• 10 Day Avg. Volume: 1,067,480
• 30 Day Avg. Volume: 457,946
• PEG Ratio: 0.04
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -23.78
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.50 ▼(-19.35% Downside)

The overall stock score is primarily driven by severe financial distress, as reflected in negative profit margins, insolvency, and insufficient cash flow. Technical analysis indicates a bearish trend, further impacting the score. The negative P/E ratio and lack of dividend yield contribute to a poor valuation, reinforcing the stock's unattractiveness.

Positive Factors

Sustainability Focus

The emphasis on sustainability and environmental compliance positions the company favorably for long-term partnerships with eco-conscious clients and regulatory bodies, enhancing its market position in the circular economy.

Diverse Revenue Streams

Multiple revenue streams from recycling and trading provide a buffer against market volatility, supporting long-term business resilience and potential growth opportunities.

Circular Economy Role

Participation in the circular economy aligns with global sustainability trends, potentially increasing demand for recycled products and enhancing the company's competitive advantage.

Negative Factors

Financial Distress

Ongoing financial distress, characterized by declining revenues and losses, threatens the company's ability to sustain operations and invest in growth, posing a significant long-term risk.

Negative Cash Flow

Negative cash flow indicates challenges in funding operations and growth, limiting financial flexibility and increasing vulnerability to economic downturns.

High Leverage

High leverage and insolvency risk reduce financial stability, potentially leading to increased borrowing costs and difficulty in accessing capital markets.

China Metal Resources Utilization Ltd. Business Overview & Revenue Model

Company Description

China Metal Resources Utilization Ltd. (1636) is a leading company in the metal recycling and resource utilization sector, primarily focused on the processing and recycling of non-ferrous metals. The company operates through various segments, including metal smelting, recycling, and trading, providing sustainable solutions for metal resource management. With a commitment to environmental protection and resource efficiency, China Metal Resources Utilization Ltd. plays a crucial role in the circular economy, offering high-quality recycled metal products to various industries.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of recycled non-ferrous metals such as copper, aluminum, and zinc. It profits from processing scrap metal, which involves collecting, sorting, and refining materials to create market-ready products. Additionally, China Metal Resources Utilization Ltd. engages in trading activities, where it purchases scrap metals at lower prices and sells the refined metals at a premium. Key partnerships with industrial clients and suppliers enhance its operational efficiency and provide stable demand for its products. The company's focus on sustainability and compliance with environmental regulations also positions it favorably in the market, potentially leading to partnerships with government and private sectors looking for eco-friendly solutions.

China Metal Resources Utilization Ltd. Financial Statement Overview

Summary

China Metal Resources Utilization Ltd. is experiencing severe financial distress. The income statement shows declining revenues and persistent losses, with negative profit margins. The balance sheet reveals negative equity and high leverage, indicating insolvency. Cash flow is insufficient, with negative free cash flow, highlighting significant financial challenges.

Income Statement

The company has experienced significant revenue decline and persistent losses over the years. The gross profit margin and net profit margin are negative, indicating an inability to cover costs and generate profits. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies and financial distress.

Balance Sheet

The company's balance sheet shows alarming signs of financial distress with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, but the high level of debt relative to assets suggests significant financial risk. The equity ratio is negative, further emphasizing the precarious financial position.

Cash Flow

The cash flow situation is concerning, with operating cash flow frequently at or near zero, and free cash flow negative in several years. This indicates challenges in generating sufficient cash to fund operations and growth. The lack of positive free cash flow growth is a critical weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	354.69M	468.04M	837.70M	2.39B	7.72B	16.70B
Gross Profit	746.00K	-30.73M	-111.89M	-289.73M	151.60M	62.58M
EBITDA	-134.49M	-188.38M	-288.48M	-2.56B	219.77M	-150.13M
Net Income	-638.79M	-652.46M	-805.78M	-4.76B	-95.48M	-387.25M
Balance Sheet
Total Assets	1.07B	1.08B	1.38B	2.40B	6.73B	6.26B
Cash, Cash Equivalents and Short-Term Investments	880.00K	3.61M	18.33M	2.39M	11.95M	47.32M
Total Debt	1.71B	1.72B	1.65B	1.60B	1.80B	1.89B
Total Liabilities	5.43B	5.24B	4.89B	5.10B	5.02B	4.77B
Stockholders Equity	-4.36B	-4.16B	-3.51B	-2.70B	1.71B	1.49B
Cash Flow
Free Cash Flow	-25.47M	-18.04M	-69.81M	-212.38M	114.20M	134.85M
Operating Cash Flow	-25.47M	-17.66M	-69.31M	-212.29M	116.07M	151.79M
Investing Cash Flow	92.00K	-33.00K	14.36M	198.29M	-380.46M	-484.74M
Financing Cash Flow	7.35M	3.00M	70.91M	4.52M	228.05M	322.87M

China Metal Resources Utilization Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1636, the sentiment is Negative. The current price of 0.62 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.79, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 36.67 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1636.

China Metal Resources Utilization Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1258	77 Outperform	€51.55B	14.95	20.71%	2.16%	-6.03%	37.62%
0505	73 Outperform	HK$889.28M	3.88	9.41%	―	24.22%	-5.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0661	54 Neutral	HK$1.61B	―	-1.52%	―	-4.02%	-1500.00%
1370	51 Neutral	HK$403.93M	-1.19	-41.19%	―	-6.51%	41.00%
1636	39 Underperform	HK$291.30M	-0.42	―	―	-69.37%	-20.23%

China Metal Resources Utilization Ltd. Corporate Events

China Metal Resources Utilization Faces Financial Uncertainty Amid Investment Efforts

China Metal Resources Utilization Ltd. announced that its auditors have issued a disclaimer opinion on its financial statements for the year ended December 31, 2024, due to concerns about the company’s ability to continue as a going concern. The company is actively seeking new investment, with a potential investor from Sichuan province conducting due diligence. Despite setbacks with previous investors, the company remains focused on securing RMB300 million to RMB500 million to drive its debt restructuring process. Additionally, the company is maintaining communications with creditors and managing cost control and working capital, although these measures alone are insufficient to resolve the financial concerns. The lifting of frozen bank accounts and assets has positioned the company to resume normal operations once the necessary investment is secured.