Hong Kong Resources Holdings Co. Ltd. (2882) AI Stock Analysis

• Market Cap: €177.98M
• Dividend Yield: N/A
• Average Volume (3M): 59.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 15.37%
• EPS Growth: -36.59%
• Country: HK
• Employees: 1,144
• Sector: Services
• Sector Strength: N/A
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 269,671,600
• 10 Day Avg. Volume: 78,843
• 30 Day Avg. Volume: 59,474
• PEG Ratio: 0.18
• Price to Book (P/B): -0.31
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -0.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score of 40 reflects significant financial challenges, including high leverage and persistent losses. Technical indicators suggest a bearish trend with oversold conditions, while valuation metrics highlight unprofitability. These factors collectively indicate substantial risks for investors.

Hong Kong Resources Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Hong Kong Resources Holdings Co. Ltd. (2882) is a diversified company primarily engaged in the exploration, extraction, and processing of various natural resources, particularly in the mining sector. The company operates in various regions, focusing on the acquisition and development of mineral properties. In addition to mining, Hong Kong Resources Holdings also invests in resource-related projects and engages in trading activities, contributing to its portfolio of services and products in the natural resources sector.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of extracted minerals and resources, which include metals and other commodities. Its revenue model is largely driven by production levels and market prices for these resources. Additionally, partnerships with other mining companies or stakeholders can enhance its operational capacity and market reach, contributing to its overall earnings. The company may also derive income from investments in resource-related projects and trading activities, which can provide supplementary revenue in line with the performance of the commodities market.

Hong Kong Resources Holdings Co. Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges, including high leverage, negative equity, and persistent losses. Despite strong revenue growth, profitability and cash flow issues pose substantial risks, necessitating improvements in operational efficiency and balance sheet health.

Income Statement

The company shows a significant revenue growth rate of 34.5% in the latest period, indicating strong top-line expansion. However, profitability metrics are concerning, with negative net profit and EBIT margins, suggesting operational inefficiencies and challenges in cost management. The gross profit margin has improved over time, but the persistent negative net income highlights ongoing financial struggles.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The negative stockholders' equity is a critical concern, reflecting accumulated losses. Although the return on equity is positive, it is primarily due to the negative equity base, which is not sustainable long-term. The equity ratio is also negative, underscoring the company's financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating liquidity issues. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow. However, the negative growth in free cash flow and operating cash flow coverage ratio highlight ongoing cash management challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	948.72M	604.52M	618.51M	901.97M	855.82M
Gross Profit	321.30M	170.24M	171.56M	196.15M	268.29M
EBITDA	-153.72M	-89.69M	-56.67M	-62.65M	74.41M
Net Income	-126.49M	-135.32M	-89.74M	-78.92M	-15.11M
Balance Sheet
Total Assets	1.57B	1.11B	1.78B	1.79B	1.83B
Cash, Cash Equivalents and Short-Term Investments	53.34M	31.92M	71.23M	84.60M	96.16M
Total Debt	2.18B	1.47B	1.92B	1.76B	1.71B
Total Liabilities	2.36B	1.69B	2.15B	1.97B	1.95B
Stockholders Equity	-423.87M	-314.50M	-191.72M	-80.93M	-66.79M
Cash Flow
Free Cash Flow	-412.63M	-286.38M	-75.78M	-56.43M	-13.04M
Operating Cash Flow	-381.98M	-260.17M	-65.48M	-46.72M	-5.29M
Investing Cash Flow	-30.05M	838.22M	-77.25M	-40.66M	13.49M
Financing Cash Flow	433.39M	-618.49M	66.84M	38.43M	-58.55M

Hong Kong Resources Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2882, the sentiment is Neutral. The current price of 0.6 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.66, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2882.

Hong Kong Resources Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0887	72 Outperform	HK$1.96B	7.16	5.10%	3.77%	6.82%	42.74%
1929	64 Neutral	$133.97B	22.93	22.73%	3.43%	-17.53%	-8.90%
8537	62 Neutral	HK$74.88M	61.18	0.59%	―	-5.34%	-78.88%
1815	59 Neutral	HK$2.33B	34.43	3.54%	―	-23.48%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
0417	44 Neutral	HK$311.48M	-1.58	-43.66%	―	-27.28%	47.40%
2882	40 Underperform	€177.98M	-1.36	―	―	15.37%	-36.59%