M-Resources Group Limited (8186) AI Stock Analysis

• Market Cap: HK$32.45M
• Dividend Yield: N/A
• Average Volume (3M): 165.75K
• Price to Earnings (P/E): 23.9
• Beta (1Y): -0.08
• Revenue Growth: 12.63%
• EPS Growth: N/A
• Country: HK
• Employees: 15
• Sector: Consumer Defensive
• Sector Strength: 44
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): <0.01
• Shares Outstanding: 113,868,640
• 10 Day Avg. Volume: 36,000
• 30 Day Avg. Volume: 165,754
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 44 Neutral
• 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and increase sales, which is crucial for long-term sustainability.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Improved Gross Margins

Improved gross margins reflect effective cost control, which can lead to better profitability and competitive positioning over time.

Negative Factors

Low Profitability

Low profitability indicates challenges in converting revenue into actual profit, which can hinder reinvestment and shareholder returns.

Cash Flow Issues

Lack of positive cash flow raises concerns about liquidity and operational efficiency, potentially limiting the company's ability to fund growth initiatives.

Operational Efficiency Challenges

Low operational margins suggest inefficiencies in core operations, which could impact the company's ability to sustain long-term profitability.

M-Resources Group Limited Business Overview & Revenue Model

Company Description

M-Resources Group Limited, an investment holding company, sells plantation and household products. It also provides financial services; and sells accessories. The company was formerly known as IR Resources Limited and changed its name to M-Resources Group Limited in April 2021. M-Resources Group Limited is headquartered in Lai Chi Kok, Hong Kong.

How the Company Makes Money

M-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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.16M	26.91M	22.31M	27.09M	21.16M
Gross Profit	5.65M	4.88M	2.63M	3.28M	2.90M
EBITDA	421.00K	-1.10M	53.44M	-3.94M	-15.76M
Net Income	189.00K	-1.64M	49.29M	-7.29M	-18.68M
Balance Sheet
Total Assets	26.46M	27.05M	22.19M	22.30M	19.53M
Cash, Cash Equivalents and Short-Term Investments	7.02M	18.17M	4.96M	1.86M	1.55M
Total Debt	91.00K	35.00K	126.00K	49.07M	44.29M
Total Liabilities	4.75M	5.62M	17.00M	70.26M	61.58M
Stockholders Equity	21.72M	21.23M	5.19M	-47.96M	-42.04M
Cash Flow
Free Cash Flow	0.00	-3.47M	-57.00K	-4.23M	4.02M
Operating Cash Flow	-10.31M	-3.47M	-57.00K	-4.04M	4.06M
Investing Cash Flow	0.00	178.00K	-44.00K	-185.00K	-106.00K
Financing Cash Flow	0.00	16.50M	3.20M	4.53M	-6.61M

M-Resources Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.28 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.32, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.22 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.32B	14.51	-3.18%	3.18%	1.92%	-6.57%
8277	51 Neutral	HK$34.65M	1.19		―	-66.35%	―
1822	48 Neutral	HK$152.15M	1.41	-17.27%	―	-17.96%	-95.06%
0094	46 Neutral	HK$133.56M	―	-9.04%	―	-33.99%	-13.80%
8186	44 Neutral	HK$32.45M	23.95	6.30%	―	12.63%	―
1580	23 Underperform	HK$159.97M	―	-2832.88%	―	84.56%	88.07%
8191	―	HK$11.69M	12.97	-49.13%	―	―	―