APAC Resources (1104) AI Stock Analysis

• Market Cap: HK$2.74B
• Dividend Yield: 5%
• Average Volume (3M): 5.34M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.21
• Revenue Growth: -53.85%
• EPS Growth: -41.90%
• Country: HK
• Employees: 16
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.41
• Shares Outstanding: 1,414,201,500
• 10 Day Avg. Volume: 8,345,372
• 30 Day Avg. Volume: 5,343,296
• 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: 60 Neutral
• Price Target: HK$1.50 ▼(-30.56% Downside)

APAC Resources scores moderately due to its strong revenue growth and robust balance sheet, which are offset by profitability challenges and cash flow issues. The technical analysis suggests a neutral to slightly negative outlook, while the valuation is attractive in terms of dividend yield but concerning due to a negative P/E ratio. Addressing operational inefficiencies and improving cash flow are critical for future growth.

APAC Resources Business Overview & Revenue Model

Company Description

APAC Resources Limited is an investment holding company primarily engaged in the natural resources and commodities sector. The company operates through a diverse portfolio, including primary investments in natural resource companies and commodities trading. APAC Resources is listed on the Hong Kong Stock Exchange and strategically invests in both listed and unlisted natural resources companies, focusing on long-term value creation.

How the Company Makes Money

APAC Resources makes money through its strategic investments and commodities trading activities. Its revenue streams include dividend income and capital gains from its portfolio of investments in natural resources companies, as well as profits from trading commodities such as iron ore, coal, and other bulk commodities. The company leverages its deep industry expertise to identify and invest in undervalued assets, creating value through active management and strategic partnerships. Additionally, APAC Resources benefits from its network of relationships in the resources sector, enhancing its ability to secure lucrative trading deals and partnerships that bolster its earnings.

APAC Resources Financial Statement Overview

Summary

APAC Resources demonstrates significant revenue growth, indicating strong sales performance. However, profitability remains a concern with negative operating margins and cash flow challenges. The company's balance sheet is robust, supported by low leverage and increasing equity, but rising liabilities warrant careful monitoring.

Income Statement

APAC Resources shows a significant increase in total revenue for 2024, leading to a revenue growth rate of 120.1% compared to 2023. Despite this, the company struggles with profitability, as indicated by negative EBIT and an improved but still negative net profit margin, likely due to high operational costs. The gross profit margin remains relatively stable but could improve, suggesting room for operational efficiency gains.

Balance Sheet

The balance sheet highlights strong equity standing with a low debt-to-equity ratio, indicating prudent use of leverage. Stockholders' equity has consistently increased, suggesting financial stability. However, the equity ratio shows a slight decline, indicating an increase in total liabilities. Overall, the company maintains a solid financial foundation, but growing liabilities could pose future risks.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow and operating cash flow in 2024, reflecting potential liquidity issues. The negative free cash flow growth rate indicates increased capital expenditure and operational challenges that need addressing. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	568.82M	1.19B	540.04M	555.30M	1.11B	476.80M
Gross Profit	186.25M	93.38M	112.16M	284.24M	640.14M	85.83M
EBITDA	125.08M	472.12M	-50.70M	-438.34M	662.48M	-26.02M
Net Income	-513.13M	390.03M	-318.55M	-465.99M	1.36B	-429.40M
Balance Sheet
Total Assets	3.96B	4.22B	3.90B	4.47B	4.94B	3.53B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.37B	1.17B	560.52M	438.65M	652.65M
Total Debt	580.76M	281.72M	187.48M	292.77M	3.42M	4.50M
Total Liabilities	672.90M	360.64M	316.90M	421.69M	114.19M	90.82M
Stockholders Equity	3.29B	3.84B	3.55B	4.05B	4.82B	3.44B
Cash Flow
Free Cash Flow	-313.21M	-337.87M	-75.41M	-15.15M	66.95M	26.92M
Operating Cash Flow	-312.40M	-336.15M	-73.53M	-14.13M	66.97M	27.10M
Investing Cash Flow	163.33M	352.28M	-34.12M	-139.13M	-103.99M	-100.63M
Financing Cash Flow	262.98M	6.51M	-234.68M	128.55M	-126.17M	-126.03M

APAC Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1104, the sentiment is Neutral. The current price of 2.16 is above the 20-day moving average (MA) of 1.99, above the 50-day MA of 1.75, and above the 200-day MA of 1.28, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1104.

APAC Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0335	―	HK$1.85B	26.64	2.46%	2.17%	-25.99%	-19.06%
1104	―	HK$2.74B	10.92	6.23%	5.00%	-53.85%	-41.90%
0064	―	HK$1.84B	35.14	0.66%	1.67%	13.35%	15.14%
0218	―	€2.51B	―	-2.44%	―	-45.13%	60.10%
1911	―	$3.58B	-96.15	-0.67%	―	76.19%	90.88%
0030	―	HK$1.84B	87.50	―	―	―	―

APAC Resources Corporate Events

APAC Resources Expands Stake in Valterra Platinum

APAC Resources Limited, a company incorporated in Bermuda, has announced the acquisition of 20,000 shares in Valterra Platinum, representing about 0.01% of the company’s total issued share capital. This acquisition, conducted through on-market transactions on the London Stock Exchange, follows a previous purchase of 220,000 shares within the past 12 months. The total holdings now amount to 240,000 shares, or approximately 0.09% of Valterra Platinum’s share capital. The transaction is classified as a discloseable transaction under Chapter 14 of the Listing Rules due to the aggregate percentage ratio exceeding 5% but remaining below 25%.

APAC Resources Announces Dispatch of Offer Document and Transaction Termination

APAC Resources Limited, along with Allied Group Limited and Dragon Mining Limited, has announced the dispatch of an offer document related to a conditional voluntary cash offer by Morton Securities Limited on behalf of Wah Cheong Development Limited to acquire all issued shares of Dragon Mining Limited. The offer document outlines the details, expected timetable, and terms of the offer, which began on June 2, 2025. The announcement also includes the withdrawal of an offer by Allied Properties Resources Limited and the termination of a possible major transaction for APAC Resources Limited, potentially impacting the company’s strategic positioning and stakeholder interests.

APAC Resources Announces Conditional Cash Offer for Dragon Mining Shares

APAC Resources Limited, through its indirect wholly-owned subsidiary Wah Cheong Development (B.V.I.) Limited, has announced a conditional voluntary cash offer to acquire all issued shares of Dragon Mining Limited. The offer is priced at HK$2.60 per share, with a maximum acquisition of 111,218,886 shares, requiring HK$289,169,103.60 in total. The offer is subject to regulatory approvals and is part of a strategic move to consolidate its position in the mining sector. Allied Properties, a significant shareholder, has agreed not to accept the offer, impacting the potential acquisition size.

APAC Resources Expands Stake in Novagold with New Share Acquisition

APAC Resources Limited, a company incorporated in Bermuda, has announced a significant acquisition of shares in Novagold. The company has acquired a total of 3,270,000 shares, representing approximately 0.82% of Novagold’s total issued share capital. This acquisition, which includes both public offering and on-market transactions, is classified as a discloseable transaction under Chapter 14 of the Listing Rules due to the applicable percentage ratios. This strategic move is expected to enhance APAC Resources’ investment portfolio and strengthen its market position.

APAC Resources Announces Trading Halt Pending Inside Information Release

APAC Resources Limited has announced a trading halt on its securities effective from May 6, 2025, pending the release of an announcement related to inside information and in accordance with The Hong Kong Code on Takeovers and Mergers. This halt indicates significant developments within the company that may impact its operations and market positioning, potentially affecting stakeholders and investors.