China Metal Resources Utilization Ltd. (1636) AI Stock Analysis

• Market Cap: HK$354.04M
• Dividend Yield: N/A
• Average Volume (3M): 457.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -69.37%
• EPS Growth: -20.23%
• Country: HK
• Employees: 250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): N/A
• Shares Outstanding: 448,155,730
• 10 Day Avg. Volume: 1,067,480
• 30 Day Avg. Volume: 457,946
• PEG Ratio: 0.04
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.92
• P/FCF Ratio: -23.78
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$1.00 ▲(23.46% Upside)

The overall stock score is heavily influenced by the company's poor financial performance, which is the most significant factor. Technical analysis also indicates bearish momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends. The absence of earnings call data and corporate events means these components do not impact the score.

China Metal Resources Utilization Ltd. Business Overview & Revenue Model

Company Description

China Metal Resources Utilization Limited, together with its subsidiaries, engages in the manufacturing and trading of copper and related products in the People's Republic of China. It operates through three segments: Recycled Copper Products, Power Transmission and Distribution Cables, and Communication Cables. The company processes recycled scrap copper and electrolytic copper to manufacture a range of copper products, including copper wire rods, wires, plates, and granules; and trades in aluminum and nickel products. It is also involved in the manufacture and sale of various power transmission and distribution, and communication cables. The company was incorporated in 2013 and is headquartered in Mianyang, the People's Republic of China.

How the Company Makes Money

China Metal Resources Utilization Ltd. generates revenue primarily through the sale of processed copper products. The company sources scrap copper from various suppliers, including industrial and commercial entities, and processes it into refined copper products like copper rods and wires. These products are sold to manufacturers in sectors such as electronics, construction, and automotive industries, which require high-quality copper materials for their production processes. Additionally, strategic partnerships and supply agreements with key players in these industries help stabilize and grow the company's revenue streams. The company's focus on eco-friendly practices and sustainable resource management also enhances its market appeal and competitiveness.

China Metal Resources Utilization Ltd. Financial Statement Overview

Summary

China Metal Resources Utilization Ltd. is experiencing severe financial distress. The income statement shows declining revenues and persistent losses, with negative profit margins. The balance sheet reveals negative equity and high leverage, indicating insolvency. Cash flow is insufficient, with negative free cash flow, highlighting significant financial challenges.

Income Statement

The company has experienced significant revenue decline and persistent losses over the years. The gross profit margin and net profit margin are negative, indicating an inability to cover costs and generate profits. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies and financial distress.

Balance Sheet

The company's balance sheet shows alarming signs of financial distress with negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is not calculable due to negative equity, but the high level of debt relative to assets suggests significant financial risk. The equity ratio is negative, further emphasizing the precarious financial position.

Cash Flow

The cash flow situation is concerning, with operating cash flow frequently at or near zero, and free cash flow negative in several years. This indicates challenges in generating sufficient cash to fund operations and growth. The lack of positive free cash flow growth is a critical weakness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	354.69M	468.04M	837.70M	2.39B	7.72B	16.70B
Gross Profit	746.00K	-30.73M	-111.89M	-289.73M	151.60M	62.58M
EBITDA	-134.49M	-188.38M	-288.48M	-2.56B	219.77M	-150.13M
Net Income	-638.79M	-652.46M	-805.78M	-4.76B	-95.48M	-387.25M
Balance Sheet
Total Assets	1.07B	1.08B	1.38B	2.40B	6.73B	6.26B
Cash, Cash Equivalents and Short-Term Investments	880.00K	3.61M	18.33M	2.39M	11.95M	47.32M
Total Debt	1.71B	1.72B	1.65B	1.60B	1.80B	1.89B
Total Liabilities	5.43B	5.24B	4.89B	5.10B	5.02B	4.77B
Stockholders Equity	-4.36B	-4.16B	-3.51B	-2.70B	1.71B	1.49B
Cash Flow
Free Cash Flow	-25.47M	-18.04M	-69.81M	-212.38M	114.20M	134.85M
Operating Cash Flow	-25.47M	-17.66M	-69.31M	-212.29M	116.07M	151.79M
Investing Cash Flow	92.00K	-33.00K	14.36M	198.29M	-380.46M	-484.74M
Financing Cash Flow	7.35M	3.00M	70.91M	4.52M	228.05M	322.87M

China Metal Resources Utilization Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1636, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.99, and above the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 12.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1636.

China Metal Resources Utilization Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1258	76 Outperform	€51.55B	14.95	20.71%	2.55%	-6.03%	37.62%
0505	73 Outperform	HK$889.28M	3.88	9.41%	―	24.22%	-5.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0661	56 Neutral	HK$1.61B	-32.14	-1.52%	―	-4.02%	-1500.00%
1370	45 Neutral	HK$403.93M	-1.19	-41.19%	―	-6.51%	41.00%
1636	40 Underperform	HK$354.04M	-0.51	―	―	-69.37%	-20.23%

China Metal Resources Utilization Ltd. Corporate Events

China Metal Resources Utilization Reports Interim Financial Results for 2025

China Metal Resources Utilization Ltd. reported its interim financial results for the six months ending June 30, 2025, revealing a decrease in revenue to RMB 340,852,000 from RMB 454,200,000 in the previous year. The company experienced a gross loss of RMB 2,317,000 and a total comprehensive loss of RMB 200,364,000, indicating ongoing financial challenges. Despite these losses, the company reported a positive exchange difference on translating foreign operations, contributing to a slight improvement in comprehensive income compared to the previous period.

The most recent analyst rating on (HK:1636) stock is a Sell with a HK$1.50 price target. To see the full list of analyst forecasts on China Metal Resources Utilization Ltd. stock, see the HK:1636 Stock Forecast page.

China Metal Resources Utilization Ltd. Schedules Board Meeting for Interim Results

China Metal Resources Utilization Ltd. has announced that its board of directors will meet on August 29, 2025, to approve and publish the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

China Metal Resources Utilization Faces Financial Uncertainty Amid Debt Restructuring Efforts

China Metal Resources Utilization Ltd. announced that its auditors have issued a disclaimer opinion on its financial statements for the year ending December 31, 2024, due to concerns about the company’s ability to continue as a going concern. The company is undergoing a debt restructuring process, aiming to convert debts from major state-owned creditors into equity, contingent upon restoring business operations to a normal level. The company plans to raise RMB300 million to RMB500 million to achieve this, having already secured a RMB400 million convertible bond agreement with Sichuan Kaiyue Investment Company Limited. The company is also in discussions with a Sichuan provincial state-owned company for further investment.