tiprankstipranks
Trending News
More News >
China Metal Resources Utilization Ltd. (HK:1636)
:1636
Hong Kong Market
Advertisement

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

Compare
0 Followers

Top Page

HK

China Metal Resources Utilization Ltd.

(1636)

Rating:46Neutral
Price Target:
HK$0.50
▼(-10.71%Downside)
The company's financial distress is the most significant factor negatively impacting its score. Technical indicators provide some stability, but the overall downtrend and negative valuation metrics weigh heavily against the stock's attractiveness.

China Metal Resources Utilization Ltd. (1636) vs. iShares MSCI Hong Kong ETF (EWH)

China Metal Resources Utilization Ltd. Business Overview & Revenue Model

Company DescriptionChina Metal Resources Utilization Limited, together with its subsidiaries, engages in the manufacturing and trading of copper and related products in the People's Republic of China. It operates through three segments: Recycled Copper Products, Power Transmission and Distribution Cables, and Communication Cables. The company processes recycled scrap copper and electrolytic copper to manufacture a range of copper products, including copper wire rods, wires, plates, and granules; and trades in aluminum and nickel products. It is also involved in the manufacture and sale of various power transmission and distribution, and communication cables. The company was incorporated in 2013 and is headquartered in Mianyang, the People's Republic of China.
How the Company Makes MoneyChina Metal Resources Utilization Ltd. generates revenue primarily through the collection and processing of scrap copper, which is then converted into high-quality copper products such as copper rods, wires, and other related products. These products are sold to manufacturers and industries that require copper as a raw material for producing electrical cables, electronic products, and other industrial components. The company leverages its extensive network for sourcing scrap metal and utilizes state-of-the-art processing facilities to maximize yield and quality. Additionally, strategic partnerships and long-term contracts with suppliers and customers play a crucial role in stabilizing and enhancing its revenue streams.

China Metal Resources Utilization Ltd. Financial Statement Overview

Summary
The company displays severe financial distress across financial statements. Negative margins indicate the inability to cover costs, while negative equity and high leverage suggest significant financial risk. Cash flow issues further highlight these challenges.
Income Statement
10
Very Negative
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
5
Very Negative
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
15
Very Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue468.04M819.91M2.39B7.72B16.70B
Gross Profit-30.73M-129.69M-289.73M151.60M62.58M
EBITDA-188.38M-288.48M-2.57B219.77M-150.13M
Net Income-652.46M-805.78M-4.76B-95.48M-387.25M
Balance Sheet
Total Assets1.08B1.38B2.40B6.73B6.26B
Cash, Cash Equivalents and Short-Term Investments3.61M18.33M2.39M11.95M47.32M
Total Debt1.72B1.65B1.60B1.80B1.89B
Total Liabilities5.24B4.89B5.10B5.02B4.77B
Stockholders Equity-4.16B-3.51B-2.70B1.71B1.49B
Cash Flow
Free Cash Flow-18.04M-69.81M-212.38M114.20M134.85M
Operating Cash Flow-17.66M-69.31M-212.29M116.07M151.79M
Investing Cash Flow-33.00K14.36M198.29M-380.46M-484.74M
Financing Cash Flow3.00M70.91M4.52M228.05M322.87M

China Metal Resources Utilization Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.56
Price Trends
50DMA
0.40
Positive
100DMA
0.56
Positive
200DMA
0.70
Negative
Market Momentum
MACD
0.06
Negative
RSI
55.79
Neutral
STOCH
46.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1636, the sentiment is Positive. The current price of 0.56 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.40, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 46.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1636.

China Metal Resources Utilization Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.36B10.180.09%2.81%2.25%-33.44%
60
Neutral
HK$1.15B26.671.31%26.83%
46
Neutral
HK$250.97M
-44.40%21.00%
DE3N4
€3.04B8.4719.19%4.71%
42
Neutral
HK$474.25M-35.00%-5.27%47.34%
HK$8.40B100.001.13%0.31%
HK$970.12M3.6311.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1636
China Metal Resources Utilization Ltd.
0.56
0.08
16.67%
DE:3N4
China Nonferrous Mining Corp. Ltd.
0.81
0.10
14.08%
HK:0661
China Daye Non-Ferrous Metals Mining Limited
0.06
0.00
0.00%
HK:1370
Aowei Holding Limited
0.29
-0.19
-39.58%
HK:2362
Jinchuan Group International Resources Co. Ltd
0.64
-0.18
-21.95%
HK:0505
Xingye Alloy Materials Group Limited
1.08
0.08
8.00%

China Metal Resources Utilization Ltd. Corporate Events

China Metal Resources Utilization Ltd. AGM Results: Ordinary Resolutions Passed, Special Resolutions Rejected
Jun 30, 2025

China Metal Resources Utilization Ltd. announced the results of its Annual General Meeting held on June 30, 2025. All ordinary resolutions, including the adoption of financial statements for the years ending 2022, 2023, and 2024, and the re-election of several directors, were passed. However, special resolutions regarding share repurchase and issuance mandates did not pass due to insufficient votes, indicating potential shareholder concerns about the company’s strategic direction.

China Metal Resources Utilization Ltd. Fails to Pass Capital Reduction and Share Subdivision Resolution
Jun 30, 2025

China Metal Resources Utilization Ltd. announced that the special resolution regarding the proposed capital reduction and share subdivision was not passed at the extraordinary general meeting held on June 30, 2025. As a result, the capital reduction and share subdivision have not become unconditional, and the company is considering proposing these measures again in the future. This decision impacts the company’s financial restructuring plans and may influence its market positioning and stakeholder interests.

China Metal Resources Utilization Ltd. Announces Capital Restructuring Plan
Jun 11, 2025

China Metal Resources Utilization Ltd. has announced an Extraordinary General Meeting to discuss a special resolution involving a significant capital restructuring. The proposed changes include a capital reduction and share sub-division, aimed at offsetting accumulated losses and potentially improving the company’s financial flexibility. This move could have implications for the company’s market positioning and stakeholder interests.

China Metal Resources Utilization Ltd. Announces Capital Restructuring
Jun 10, 2025

China Metal Resources Utilization Ltd. has announced a proposed capital reduction and share sub-division. The issued share capital will be reduced, decreasing the par value of each share from HK$1.00 to HK$0.01, and unissued shares will be subdivided into 100 new shares each with a par value of HK$0.01. Additionally, the board lot size for trading shares will change from 4,000 to 8,000 new shares. These changes are subject to approval at the upcoming EGM, and stakeholders are advised to exercise caution.

China Metal Resources Utilization Clarifies AGM Register Closure Dates
Jun 9, 2025

China Metal Resources Utilization Ltd. has issued a clarification regarding the closure of its register of members in relation to the upcoming annual general meeting scheduled for June 30, 2025. The company announced that the register will be closed from June 25 to June 30, 2025, to facilitate shareholder eligibility for attending and voting at the meeting. This announcement ensures stakeholders are informed about the necessary procedures for participation, reflecting the company’s commitment to transparent communication with its shareholders.

China Metal Resources Utilization Ltd. Announces 2025 AGM and Key Resolutions
Jun 8, 2025

China Metal Resources Utilization Ltd. has announced its upcoming annual general meeting scheduled for June 30, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of audited financial statements for the years 2022 to 2024, the re-election of executive directors, and the re-appointment of the company’s auditor. Additionally, special resolutions will be considered regarding the company’s authority to purchase its shares and to issue new shares, which could impact its market operations and shareholder value.

China Metal Resources Utilization Ltd. Updates on 2014 Share Option Scheme
May 28, 2025

China Metal Resources Utilization Ltd. has issued a supplemental announcement regarding its 2024 Annual Report, specifically detailing the status of its 2014 Share Option Scheme. The scheme, which expired on 28 January 2024, had no new grants during the year, and a total of 2,083,334 options were canceled or lapsed. This announcement clarifies the movement and current status of share options for directors, employees, and service providers, indicating the company’s ongoing commitment to transparency in its financial operations.

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: Jul 11, 2025