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Ares Asia Limited
(0645)
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Rating:51Neutral
Price Target:
HK$0.20
▲(54.62% Upside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by weak financial performance—persistent losses and multi-year negative operating/free cash flow outweigh the benefit of a reduced-debt balance sheet. Technicals provide modest support with the price above major moving averages and generally neutral momentum. Valuation is difficult to assess due to the negative P/E and no stated dividend yield, keeping this component slightly below average.
Positive Factors
Low Leverage and Capital Cushion
Debt reduction and positive equity provide a stronger capital base and lower interest burden than in 2021. This cushion may improve resilience over the next several months, although continued losses could gradually weaken it.
Negative Factors
Persistent Unprofitable Operations
Recurring losses and minimal gross margin indicate that the core distribution model currently lacks sufficient economic profitability. Without durable margin expansion, revenue growth alone may not translate into earnings or strengthen the equity base.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage and Capital Cushion
Debt reduction and positive equity provide a stronger capital base and lower interest burden than in 2021. This cushion may improve resilience over the next several months, although continued losses could gradually weaken it.
Read all positive factors
Ares Asia Limited (0645) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$83.65M
Dividend Yield49.18%
Average Volume (3M)36.41K
Price to Earnings (P/E)―
Beta (1Y)-0.11
Revenue Growth110.08%
EPS Growth68.72%
CountryHK
Employees5
SectorEnergy
Sector Strength52
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding513,175,400
10 Day Avg. Volume24,800
30 Day Avg. Volume36,413
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)3.00
Price to Sales (P/S)1.67
P/FCF Ratio-8.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ares Asia Limited Business Overview & Revenue Model
Company Description
Ares Asia Limited, an investment holding company, engages in the trading of coal and other commodities in Mainland China, Hong Kong, Singapore, and Vietnam. The company was formerly known as KTP Holdings Limited and changed its name to Ares Asia L...
How the Company Makes Money
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Ares Asia Limited Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.95M | 3.32M | 70.38M | 52.59M | 101.56M |
| Gross Profit | 10.95K | 101.00K | 331.00K | 1.06M | 408.00K |
| EBITDA | -634.33K | -2.25M | -1.25M | -753.00K | -1.83M |
| Net Income | -736.89K | -2.36M | -1.26M | -829.00K | -2.13M |
Balance Sheet | |||||
| Total Assets | 4.37M | 5.13M | 7.82M | 19.17M | 24.62M |
| Cash, Cash Equivalents and Short-Term Investments | 433.18K | 1.90M | 6.26M | 7.70M | 8.78M |
| Total Debt | 128.05K | 221.00K | 139.00K | 341.00K | 533.00K |
| Total Liabilities | 506.21K | 530.00K | 865.00K | 10.95M | 15.57M |
| Stockholders Equity | 3.86M | 4.60M | 6.96M | 8.22M | 9.05M |
Cash Flow | |||||
| Free Cash Flow | -1.37M | -4.11M | -1.23M | -1.78M | 31.13M |
| Operating Cash Flow | -1.37M | -4.11M | -1.21M | -1.75M | 31.13M |
| Investing Cash Flow | 0.00 | 0.00 | -20.00K | 878.00K | -2.00K |
| Financing Cash Flow | -92.61K | -253.00K | -210.00K | -210.00K | -31.52M |
Ares Asia Limited Technical Analysis
Negative
0.13
Price Trends
0.18
Negative
0.18
Negative
0.16
Negative
Market Momentum
>-0.01
Positive
35.60
Neutral
7.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0645, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.18, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.60 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0645.
Ares Asia Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | HK$126.29M | -18.13 | -2.75% | ― | 18.63% | -109.60% | |
51 Neutral | HK$83.65M | -14.85 | -19.04% | 49.18% | 110.08% | 68.72% | |
48 Neutral | HK$105.35M | 0.22 | -11.28% | ― | -29.49% | ― | |
47 Neutral | HK$114.98M | -1.96 | -1.47% | 1.37% | ― | ― | |
42 Neutral | HK$78.69M | -0.11 | 27.77% | ― | 16.00% | -16.41% | |
41 Neutral | HK$128.95M | -0.20 | -141.19% | 3.14% | -17.39% | -5.91% |
* Energy Sector Average
HK:0645
Ares Asia Limited
0.16
0.03
25.38%
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Ares Asia Limited Corporate Events
Ares Asia Sets 2026 AGM to Approve Financials, Board Changes and Share Mandates
Jul 20, 2026
Ares Asia Limited has called its annual general meeting for 23 September 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements and related reports for the year ended 31 March 2026. The meeting wi...
Ares Asia Secures Long-Term Hong Kong Head Office Lease in Connected Transaction
Jul 15, 2026
Ares Asia Limited has renewed the lease for its Hong Kong head office premises in the International Commerce Centre, securing approximately 1,269 square feet from 16 July 2026 to 14 July 2029 to maintain operational stability and avoid relocation ...
Ares Asia Executive Director Resigns but Retains Subsidiary Role
Jun 30, 2026
Ares Asia Limited announced the resignation of executive director Luo Xiao, effective 30 June 2026, citing other work arrangements but noting he will remain vice president of its indirect wholly owned subsidiary, Ares Asia Resources Pte. Ltd. The ...
Ares Asia Clarifies Board and Committee Structure in Governance Update
Jun 30, 2026
Ares Asia Limited has disclosed the current composition of its board of directors, led by Chairman and Chief Executive Officer Mr. Lai Yi-Chun, alongside one non-executive director and three independent non-executive directors. This structure unde...
Ares Asia Narrows Annual Loss as Revenue More Than Doubles
Jun 26, 2026
Ares Asia Limited reported audited annual results for the year ended 31 March 2026, with revenue more than doubling to US$6.98 million from US$3.32 million a year earlier, and gross profit rising slightly to US$11,000. Despite the stronger top lin...
Ares Asia Sets June Board Meeting to Approve Annual Results and Consider Dividend
Jun 12, 2026
Ares Asia Limited has scheduled a board meeting for 26 June 2026 to review and approve the audited annual results for the year ended 31 March 2026. The directors will also consider the potential declaration of a final dividend, a decision that cou...
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.