Newton Resources Ltd. (1231) AI Stock Analysis

Newton Resources Ltd.

(HKEX:1231)

Select Model

Rating:42Neutral

Price Target:HKD 0.29▼(-4.00% Downside)

Action:reiterated

Date:08/06/26

Weak financial performance driven by volatility, losses, and asset contraction is the primary drag; bearish technicals and poor valuation reinforce caution, though oversold indicators offer minor upside potential.

Positive Factors

Low leverageThe 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 volatilityAn ~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.

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

Market Cap: HKD 1.20B
Dividend Yield: ―
Average Volume (3M): 262.62K
Price to Earnings (P/E): -19.1
Beta (1Y): 0.15
Revenue Growth: -56.46%
EPS Growth: -275.00%
Country: Hong Kong
Employees: 29
Sector: Basic Materials
Sector Strength: 61
Industry: Steel

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 Ltd...

How the Company Makes Money

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Newton Resources Ltd. Financial Statement Overview

Summary

Low scores across income statement (15), balance sheet (25), and cash flow (30) reflect revenue volatility, consistent net losses, shrinking assets, and inconsistent cash flows, indicating weak financial health in a cyclical industry.

Income Statement

15Very Negative

Balance Sheet

25Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	105.90M	193.80M	309.94M	526.12M	201.49M	1.86B
Gross Profit	-551.32K	1.41M	5.19M	9.95M	2.80M	34.37M
EBITDA	-2.92M	-353.17K	3.85M	7.85M	562.00K	-3.27M
Net Income	-7.66M	-7.01M	-287.00K	2.37M	-2.14M	-11.34M
Balance Sheet
Total Assets	24.41M	28.38M	71.41M	109.17M	60.87M	240.32M
Cash, Cash Equivalents and Short-Term Investments	21.56M	23.56M	22.18M	22.42M	23.37M	92.33M
Total Debt	233.97K	319.96K	485.00K	14.66M	4.61M	34.71M
Total Liabilities	2.67M	5.54M	41.43M	78.83M	32.89M	47.88M
Stockholders Equity	21.15M	22.14M	29.13M	29.44M	27.07M	186.11M
Cash Flow
Free Cash Flow	-888.17K	3.43M	9.70M	-9.11M	-1.35M	99.77M
Operating Cash Flow	-885.16K	3.44M	9.73M	-9.11M	-1.34M	100.91M
Investing Cash Flow	-3,009	-7,000	-31.00K	300.68K	-6,000	-1.14M
Financing Cash Flow	-161.08K	-790.00K	-5.49M	9.37M	-1.60M	-104.15M

Newton Resources Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.30

Price Trends

50DMA0.31Negative

100DMA0.31Negative

200DMA0.31Negative

Market Momentum

MACD-0.00Positive

RSI31.24Neutral

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1231, the sentiment is Negative. The current price of 0.30 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 31.24 is Neutral, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1231.

Newton Resources Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:1231 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:3788	54Neutral	HKD 6.58B	206.81	0.74%	1.49%	-18.57%	-89.19%
HK:0893	48Neutral	HKD 116.95M	-9.59	-1.67%	―	-9.05%	44.68%
HK:0899	46Neutral	HKD 159.07M	-0.77	-19.78%	―	12.93%	67.33%
HK:1231	42Neutral	HKD 1.20B	-19.12	-35.39%	―	-56.46%	-275.00%
HK:2738	40Underperform	HKD 65.40M	-0.06	94.83%	―	-92.16%	-38.96%
HK:0581	39Underperform	HKD 3.39B	10.91	1.18%	2.20%	-0.43%	7.50%

* Basic Materials Sector Average

Performance Comparison

HK:1231 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1231	Newton Resources Ltd.	0.30	0.03	11.11%
HK:0581	China Oriental Group Co	0.91	-0.31	-25.29%
HK:0899	Asia Resources Holdings Limited	0.34	0.15	85.08%
HK:0893	China Vanadium Titano-Magnetite Mining Co., Ltd.	0.05	-0.03	-37.35%
HK:2738	Huajin International Holdings Ltd.	0.11	-0.13	-54.58%
HK:3788	China Hanking Holdings Ltd.	2.69	-1.52	-36.10%

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-el...

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

Newton Resources Ltd. AI Stock Analysis