M-Resources Group Limited (8186) AI Stock Analysis

• Market Cap: HK$39.28M
• Dividend Yield: N/A
• Average Volume (3M): 527.84K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.04
• Revenue Growth: 12.63%
• EPS Growth: N/A
• Country: HK
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 113,868,640
• 10 Day Avg. Volume: 147,500
• 30 Day Avg. Volume: 527,843
• PEG Ratio: -4.24
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 2.89
• P/FCF Ratio: -8.18
• 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: 49 Neutral
• Price Target: HK$0.35 ▲(8.75% Upside)

The overall stock score reflects the company's strong financial stability but is weighed down by low profitability and liquidity challenges. Technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. The lack of dividend yield further detracts from the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and effectively leverage its diversified business model.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Improved Gross Margins

Improved gross margins reflect better cost control and operational efficiency, which can contribute to long-term profitability.

Negative Factors

Low Net Margins

Persistently low net margins suggest challenges in converting revenue growth into meaningful profitability, which could hinder long-term financial performance.

Zero Cash Flow

Lack of cash generation from operations raises concerns about liquidity and operational efficiency, potentially impacting the company's ability to fund growth initiatives.

Limited Returns on Equity

Limited returns on equity indicate that the company is not effectively utilizing its equity base to generate substantial shareholder returns, which may affect investor confidence.

M-Resources Group Limited Business Overview & Revenue Model

Company Description

M-Resources Group Limited (8186) is a diversified investment holding company based in Hong Kong. The company primarily operates in sectors such as financial services, property investment, and trading. M-Resources Group focuses on providing comprehensive solutions, including asset management and advisory services, alongside investment in real estate and related sectors. Its core offerings encompass trading of commodities and financial instruments, making it a key player in the financial landscape of the region.

How the Company Makes Money

M-Resources Group Limited generates revenue through multiple streams. The primary source of income comes from its financial services, where it engages in trading activities involving various commodities and financial instruments, earning commissions and fees on trades. Additionally, the company derives revenue from its property investment segment by leasing and managing real estate assets, which contributes to a steady flow of rental income. Strategic partnerships with other financial institutions and investment firms also enhance its revenue potential, enabling collaborative ventures that expand its service offerings and market reach. Overall, the combination of trading, asset management, and property investment creates a diversified revenue model that supports the company’s financial growth.

M-Resources Group Limited Financial Statement Overview

Summary

The company shows positive revenue growth and improved gross margins, indicating better cost control. The balance sheet is strong with high equity and low leverage, suggesting financial stability. However, profitability is a concern with low net margins and zero operating and free cash flow, raising liquidity and operational efficiency issues.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.77M	29.16M	26.91M	22.31M	27.09M	21.16M
Gross Profit	6.28M	5.65M	4.88M	2.63M	3.28M	2.90M
EBITDA	1.44M	421.00K	-1.10M	51.28M	-3.94M	-15.76M
Net Income	1.36M	189.00K	-1.64M	49.29M	-7.29M	-33.21M
Balance Sheet
Total Assets	27.86M	26.46M	27.05M	22.19M	22.30M	19.53M
Cash, Cash Equivalents and Short-Term Investments	9.50M	7.02M	18.17M	4.96M	1.86M	1.55M
Total Debt	63.00K	91.00K	35.00K	126.00K	49.07M	44.29M
Total Liabilities	5.45M	4.75M	5.62M	17.00M	70.26M	61.58M
Stockholders Equity	22.41M	21.72M	21.23M	5.19M	-47.96M	-42.04M
Cash Flow
Free Cash Flow	-400.00K	-10.31M	-3.47M	-57.00K	-4.23M	4.02M
Operating Cash Flow	-400.00K	-10.31M	-3.47M	-57.00K	-4.04M	4.06M
Investing Cash Flow	1.50K	13.00K	178.00K	-44.00K	-185.00K	-106.00K
Financing Cash Flow	-333.00K	-837.00K	16.50M	3.20M	4.53M	-6.61M

M-Resources Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 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:8186, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.36, and above the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 35.46 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 *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1822	56 Neutral	HK$116.79M	1.08	-17.27%	―	-17.96%	-95.06%
8277	52 Neutral	HK$29.92M	0.66	―	―	-56.67%	―
8186	49 Neutral	HK$39.28M	28.99	6.30%	―	12.63%	―
0094	41 Neutral	HK$150.25M	-1.32	-9.04%	―	-33.99%	42.25%
8191	41 Neutral	HK$9.48M	―	-49.13%	―	-55.81%	-15292.41%
1580	23 Underperform	HK$164.35M	-23.81	-395.28%	―	-35.61%	89.32%