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Newton Resources Ltd. (HK:1231)
:1231
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Newton Resources Ltd. (1231) AI Stock Analysis

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HK:1231

Newton Resources Ltd.

(1231)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
HK$0.29
▼(-3.00% Downside)
Action:Reiterated
Date:08/06/26
Overall score is held back primarily by weak financial performance (sharp recent revenue drop, thin margins, and losses) and bearish technicals (below key moving averages with negative MACD). Low current leverage and recently positive operating/free cash flow provide some support, but cash flow stability and profitability remain key concerns.
Positive Factors
Low leverage
The company’s very low debt relative to equity in 2024–2025 reduces financial risk and preserves flexibility. Over a 2–6 month horizon this balance-sheet conservatism supports survival through downturns, lowers refinancing needs and enables opportunistic investment when markets improve.
Negative Factors
Extreme revenue volatility
An ~89% revenue drop in 2025 versus 2024 and multi-year volatility undermine predictability and strategic planning. Such swings impede long-term contracts, capital allocation, and supplier/customer relationships, limiting the firm's ability to sustainably rebuild scale or margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage
The company’s very low debt relative to equity in 2024–2025 reduces financial risk and preserves flexibility. Over a 2–6 month horizon this balance-sheet conservatism supports survival through downturns, lowers refinancing needs and enables opportunistic investment when markets improve.
Read all positive factors

Newton Resources Ltd. (1231) vs. iShares MSCI Hong Kong ETF (EWH)

Newton Resources Ltd. Business Overview & Revenue Model

Company Description
Newton Resources Ltd, an investment holding company, engages in identification and exploration of sourcing and supply of iron ores and other commodities in Mainland China and internationally. It also provides management services. Newton Resources ...
How the Company Makes Money
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Newton Resources Ltd. Financial Statement Overview

Summary
Financials are mixed but skew weak: the income statement shows extreme revenue volatility and a sharp 2025 decline (~89% vs. 2024) with very thin gross margins and a return to operating/net losses. Offsetting this, the balance sheet is currently low-leverage (a clear risk reducer), and cash flow has turned positive again in 2024–2025, though free cash flow fell sharply in 2025 and remains inconsistent.
Income Statement
22
Negative
Balance Sheet
64
Positive
Cash Flow
55
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue193.80M309.94M526.12M201.49M1.86B
Gross Profit1.41M5.19M9.95M2.80M34.37M
EBITDA-3.09M3.85M7.85M562.00K-3.27M
Net Income-7.01M-287.00K2.37M-2.14M-11.34M
Balance Sheet
Total Assets28.38M71.41M109.17M60.87M240.32M
Cash, Cash Equivalents and Short-Term Investments23.56M22.18M22.42M23.37M92.33M
Total Debt319.96K485.00K14.66M4.61M34.71M
Total Liabilities5.54M41.43M78.83M32.89M47.88M
Stockholders Equity22.14M29.13M29.44M27.07M186.11M
Cash Flow
Free Cash Flow3.43M9.70M-9.11M-1.35M99.77M
Operating Cash Flow3.44M9.73M-9.11M-1.34M100.91M
Investing Cash Flow-7.00K-31.00K300.68K-6.00K-1.14M
Financing Cash Flow-790.00K-5.49M9.37M-1.60M-104.15M

Newton Resources Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.30
Positive
100DMA
0.31
Positive
200DMA
0.31
Positive
Market Momentum
MACD
<0.01
Negative
RSI
77.08
Negative
STOCH
39.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1231, the sentiment is Positive. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.30, and below the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 77.08 is Negative, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1231.

Newton Resources Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
51
Neutral
HK$8.04B247.750.74%1.22%-18.57%-89.19%
50
Neutral
HK$4.08B13.201.18%1.83%-0.43%7.50%
44
Neutral
HK$1.28B-20.40-35.39%-56.46%-275.00%
44
Neutral
HK$148.20M-0.10267.35%3.98%-85.49%-1298.48%
41
Neutral
HK$84.58M-0.43-19.78%12.93%67.33%
38
Underperform
HK$148.43M-12.06-1.67%2.37%-9.05%44.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1231
Newton Resources Ltd.
0.32
0.08
33.33%
HK:0581
China Oriental Group Co
1.10
-0.30
-21.56%
HK:0899
Asia Resources Holdings Limited
0.19
0.02
13.10%
HK:0893
China Vanadium Titano-Magnetite Mining Co., Ltd.
0.07
-0.02
-27.78%
HK:2738
Huajin International Holdings Ltd.
0.25
-0.07
-21.88%
HK:3788
China Hanking Holdings Ltd.
3.25
0.11
3.50%

Newton Resources Ltd. Corporate Events

Newton Resources Wins Unanimous Shareholder Backing at AGM
Jun 10, 2026
Newton Resources Ltd. reported that shareholders unanimously approved all ordinary and special resolutions at its annual general meeting held on 10 June 2026 in Hong Kong. The matters endorsed included the 2025 audited financial statements, the re...
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: Aug 06, 2026