Aurum Pacific (China) Group Ltd. (8148) AI Stock Analysis

• Market Cap: HK$1.79B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 1.55%
• EPS Growth: 39.81%
• Country: HK
• Employees: 76
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 458,150,400
• 10 Day Avg. Volume: 2,298,780
• 30 Day Avg. Volume: 1,552,454
• PEG Ratio: -0.14
• Price to Book (P/B): 7.87
• Price to Sales (P/S): 3.34
• P/FCF Ratio: 45.53
• 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: 48 Neutral
• Price Target: HK$4.00 ▲(48.15% Upside)

The overall stock score of 48 reflects a mix of positive technical momentum and significant financial and valuation challenges. While the stock is currently experiencing strong upward momentum, the negative profit margins and cash flow issues weigh heavily on its financial performance. Additionally, the negative P/E ratio and lack of dividend yield indicate valuation concerns. Investors should be cautious and consider the potential for a pullback given the overbought technical indicators.

Positive Factors

Diversified business model

Aurum Pacific's mix of mining, consultancy and trading revenue provides structural resilience across commodity cycles. Diversified streams reduce reliance on a single commodity, enable cross-selling of services and partnerships, and support steadier long-term cash flows and strategic optionality.

Low leverage and improved capital structure

Very low debt levels materially reduce financial risk and interest burden, giving management room to invest in exploration or working capital. A conservative leverage profile supports durability through downcycles and preserves flexibility to fund strategic initiatives without pressuring cash flow.

Strong gross margins at production level

A high gross margin implies efficient extraction/trading economics or favorable product mix at the unit level. This structural cost advantage means operating leverage could restore profitability if overheads and SG&A are controlled, making margin recovery feasible over a multi-quarter horizon.

Negative Factors

Persistent negative operating and net margins

Sustained negative EBIT/EBITDA and net margins indicate the company fails to convert revenue into operating profits. Over time this erodes retained earnings, constrains reinvestment in growth or exploration, and signals structural cost or pricing weaknesses that threaten long-term viability.

Weak free cash flow generation

Negative FCF growth and FCF shortfall versus net income show the firm struggles to convert earnings into durable cash. This limits capacity to fund capex, exploration, debt reduction or dividends without external financing, undermining sustainable investment in the mining business over time.

Negative return on equity despite solid capital base

A negative ROE despite a solid equity ratio implies the company is not generating acceptable returns on shareholder capital. Persistently poor ROE reflects ineffective asset deployment or low-margin operations and risks long-term shareholder value erosion if not corrected.

Aurum Pacific (China) Group Ltd. Business Overview & Revenue Model

Company Description

Aurum Pacific (China) Group Ltd. (8148) is a diversified investment holding company based in Hong Kong. The company primarily operates in the sectors of mining, natural resources, and trading, focusing on the exploration and development of mineral resources. Aurum Pacific is also involved in the provision of consultancy services related to mining and resource management, as well as the trading of various commodities essential for industrial applications.

How the Company Makes Money

Aurum Pacific generates revenue through multiple key streams. Primarily, the company earns income from its mining operations by extracting and selling valuable minerals and resources. Additionally, it benefits from consultancy services offered to other mining enterprises, where it provides expert insights and strategic guidance. The trading segment contributes further to revenue by facilitating the sale of commodities in the market. The company may also establish partnerships with other firms in the mining and resources sectors, enhancing its operational capabilities and market reach, which can lead to increased sales and profitability.

Aurum Pacific (China) Group Ltd. Financial Statement Overview

Summary

Aurum Pacific (China) Group Ltd. demonstrates some positive trends in revenue growth and improved leverage ratios, indicating a move towards financial stability. However, persistent negative profit margins and cash flow challenges suggest ongoing operational inefficiencies. The company needs to focus on improving profitability and cash generation to enhance its financial health.

Income Statement

The company shows a slight revenue growth of 3.72% in the latest year, indicating some positive momentum. However, the net profit margin remains negative at -9.61%, and the EBIT and EBITDA margins are also negative, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 59.21%, suggesting efficient cost management in production. Overall, while there is revenue growth, the persistent negative profit margins highlight significant profitability issues.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.05, indicating low leverage and reduced financial risk. However, the return on equity is negative at -22.68%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at a solid 39.34%, suggesting a stable capital structure. The balance sheet shows improved financial stability, but the negative ROE indicates challenges in profitability.

Cash Flow

The company has managed to generate positive operating cash flow, but free cash flow growth is negative at -25.35%, indicating cash flow challenges. The operating cash flow to net income ratio is positive, suggesting some ability to convert income into cash. However, the free cash flow to net income ratio is below 1, highlighting inefficiencies in cash generation relative to net income. Overall, the cash flow position shows some operational strength but remains under pressure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.09M	57.31M	24.49M	21.44M	20.26M	20.73M
Gross Profit	17.44M	33.93M	15.64M	12.76M	8.37M	19.72M
EBITDA	737.00K	-3.58M	-10.63M	-20.91M	-4.01M	-62.61M
Net Income	1.83M	-5.51M	-8.54M	-21.87M	-83.34M	-71.61M
Balance Sheet
Total Assets	73.86M	61.74M	8.70M	19.57M	35.68M	159.52M
Cash, Cash Equivalents and Short-Term Investments	24.03M	32.90M	3.20M	4.45M	3.79M	3.42M
Total Debt	133.00K	1.27M	2.07M	4.43M	2.15M	37.60M
Total Liabilities	47.26M	37.33M	13.26M	13.95M	8.80M	44.69M
Stockholders Equity	26.67M	24.29M	804.00K	10.20M	31.38M	114.69M
Cash Flow
Free Cash Flow	-7.92M	4.20M	-5.04M	-1.24M	-1.92M	-2.08M
Operating Cash Flow	-7.84M	4.72M	-4.90M	-1.04M	-864.00K	1.00M
Investing Cash Flow	165.00K	-135.00K	5.51M	-191.00K	39.63M	-455.00K
Financing Cash Flow	-1.59M	25.10M	-1.86M	1.82M	-38.40M	-6.79M

Aurum Pacific (China) Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8148, the sentiment is Positive. The current price of 2.7 is below the 20-day moving average (MA) of 3.67, above the 50-day MA of 2.65, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 72.01 is Negative, neither overbought nor oversold. The STOCH value of 76.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8148.

Aurum Pacific (China) Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0536	72 Outperform	HK$834.37M	10.05	23.35%	9.81%	-6.93%	-18.99%
1808	62 Neutral	HK$683.24M	6.18	27.53%	―	421.56%	328.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8148	48 Neutral	HK$1.79B	-320.97	-31.21%	―	1.55%	39.81%
8156	48 Neutral	HK$196.44M	-24.22	―	―	48.39%	88.30%
8071	47 Neutral	HK$117.15M	-14.71	-97.49%	―	-49.86%	15.00%
8635	46 Neutral	HK$237.60M	-10.92	-19.25%	14.49%	129.07%	-5.71%