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M-Resources Group Limited (HK:8186)
:8186
Hong Kong Market

M-Resources Group Limited (8186) AI Stock Analysis

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HK

M-Resources Group Limited

(8186)

Rating:44Neutral
Price Target:
M-Resources Group Limited faces significant challenges with low profitability and cash flow issues, despite strong revenue growth and a robust balance sheet. The technical analysis indicates a bearish trend, with the stock being oversold. The high P/E ratio suggests overvaluation concerns. These factors collectively result in a lower overall score, highlighting potential risks for investors.

M-Resources Group Limited (8186) vs. iShares MSCI Hong Kong ETF (EWH)

M-Resources Group Limited Business Overview & Revenue Model

Company DescriptionM-Resources Group Limited (8186) is a diversified company listed on the Hong Kong Stock Exchange, involved primarily in the sectors of resource extraction and management. The company operates through various subsidiaries that focus on the exploration, mining, and trading of natural resources. Its core products and services include the extraction and sale of minerals and commodities, providing a critical link in the supply chain for industries reliant on these raw materials.
How the Company Makes MoneyM-Resources Group Limited generates revenue through the extraction and sale of various natural resources, including minerals and other commodities. The company earns money by mining resources from its controlled sites and selling these commodities on the open market or through long-term contracts with industrial buyers. Revenue streams are bolstered by partnerships with other mining companies, logistics providers, and international trade entities, which facilitate the efficient distribution and sale of its products. Additionally, the company may engage in the trading of commodities, leveraging market conditions to optimize returns on its resource portfolio.

M-Resources Group Limited Financial Statement Overview

Summary
M-Resources Group Limited shows positive revenue growth and improved gross margins, indicating effective cost control. The balance sheet is strong with low leverage, providing financial stability. However, profitability is a concern due to low net margins and zero operating and free cash flow, raising liquidity and operational efficiency challenges.
Income Statement
55
Neutral
The company has shown a revenue growth rate of 8.34% from 2023 to 2024, reflecting a positive trend. Gross profit margin improved to 19.39% in 2024, indicating better cost control. However, the net profit margin remains low at 0.65%, suggesting challenges in maintaining profitability despite revenue growth. The EBIT margin is 1.21%, while the EBITDA margin is slightly higher at 1.33%, both indicating limited operational profitability.
Balance Sheet
65
Positive
The balance sheet shows a strong equity position with an equity ratio of 82.08% in 2024, highlighting financial stability. The debt-to-equity ratio is low at 0.004, reflecting minimal leverage and financial risk. Return on equity is modest at 0.87%, indicating limited returns for shareholders despite a strong equity base.
Cash Flow
40
Negative
Cash flow analysis reveals significant challenges, as the company has zero operating and free cash flow in 2024, raising concerns about liquidity and operational efficiency. The lack of positive operating cash flow to net income ratio indicates potential issues in cash generation from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.16M26.91M22.31M27.09M21.16M
Gross Profit5.65M4.88M2.63M3.28M2.90M
EBITDA421.00K-1.10M53.44M-3.94M-15.76M
Net Income189.00K-1.64M49.29M-7.29M-18.68M
Balance Sheet
Total Assets26.46M27.05M22.19M22.30M19.53M
Cash, Cash Equivalents and Short-Term Investments7.02M18.17M4.96M1.86M1.55M
Total Debt91.00K35.00K126.00K49.07M44.29M
Total Liabilities4.75M5.62M17.00M70.26M61.58M
Stockholders Equity21.72M21.23M5.19M-47.96M-42.04M
Cash Flow
Free Cash Flow0.00-3.47M-57.00K-4.23M4.02M
Operating Cash Flow-10.31M-3.47M-57.00K-4.04M4.06M
Investing Cash Flow0.00178.00K-44.00K-185.00K-106.00K
Financing Cash Flow0.0016.50M3.20M4.53M-6.61M

M-Resources Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.18
Price Trends
50DMA
0.22
Negative
100DMA
0.33
Negative
200DMA
0.83
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.62
Neutral
STOCH
16.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8186, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 16.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8186.

M-Resources Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$86.73B22.0422.39%19.86%13.34%21.64%
60
Neutral
HK$17.36B10.940.20%5.52%2.68%-48.29%
54
Neutral
HK$494.67M9.933.78%113.68%
47
Neutral
HK$285.00M-18.12%-83.01%76.32%
44
Neutral
HK$20.84M107.650.88%8.34%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8186
M-Resources Group Limited
0.18
-0.84
-82.35%
HK:2892
Million Cities Holdings Ltd.
0.38
-0.06
-13.64%
HK:1209
China Resources Mixc Lifestyle Services Ltd.
38.00
14.29
60.27%
HK:1141
CMBC Capital Holdings Limited
0.46
0.24
106.82%
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: Apr 21, 2025