SEHK:1231

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Executive Summary

Newton Resources Ltd, an investment holding company, mines, processes, and sells iron concentrates in the People’s Republic of China.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Newton Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1231's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

1231

2.6%

HK Metals and Mining

4.1%

HK Market


1 Year Return

0%

1231

-20.0%

HK Metals and Mining

-5.2%

HK Market

Return vs Industry: 1231 exceeded the Hong Kong Metals and Mining industry which returned -21.4% over the past year.

Return vs Market: 1231 exceeded the Hong Kong Market which returned -6.5% over the past year.


Shareholder returns

1231IndustryMarket
7 Day2.2%2.6%4.1%
30 Day63.2%1.1%3.5%
90 Day52.5%-17.5%-5.3%
1 Year0%0%-18.3%-20.0%-2.0%-5.2%
3 Year38.8%38.8%-20.2%-23.3%-0.4%-10.6%
5 Year1.1%1.1%-34.1%-40.8%-9.0%-23.3%

Price Volatility Vs. Market

How volatile is Newton Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Newton Resources undervalued compared to its fair value and its price relative to the market?

15.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1231's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1231's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1231 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 1231 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1231's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1231 is overvalued based on its PB Ratio (15.8x) compared to the HK Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is Newton Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Newton Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Newton Resources performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1231 is currently unprofitable.

Growing Profit Margin: 1231 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1231 is unprofitable, but has reduced losses over the past 5 years at a rate of 1.1% per year.

Accelerating Growth: Unable to compare 1231's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1231 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-20%).


Return on Equity

High ROE: 1231 has a negative Return on Equity (-10.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is Newton Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 1231's short term assets (CN¥984.0M) exceed its short term liabilities (CN¥832.1M).

Long Term Liabilities: 1231's short term assets (CN¥984.0M) exceed its long term liabilities (CN¥71.6M).


Debt to Equity History and Analysis

Debt Level: 1231's debt to equity ratio (246.7%) is considered high.

Reducing Debt: 1231's debt to equity ratio has increased from 30.8% to 246.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1231 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1231 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 20.9% each year


Next Steps

Dividend

What is Newton Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1231's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1231's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1231's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1231's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1231's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Newton Resources has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Tin Lung Chong
Executive Chairman of the Board2.17yrsCN¥1.71mno data
Yue Kan Luk
CFO, Company Secretary & Executive Director5.17yrsCN¥2.12mno data
Kwan Hung Lee
Independent Non-Executive Director9.5yrsCN¥197.00kno data
King Fai Tsui
Independent Non-Executive Director9.5yrsCN¥197.00kno data
Yick Shin
Independent Non-Executive Director4.83yrsCN¥197.00kno data

5.2yrs

Average Tenure

50yo

Average Age

Experienced Board: 1231's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Newton Resources Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newton Resources Ltd
  • Ticker: 1231
  • Exchange: SEHK
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$3.720b
  • Shares outstanding: 4.00b
  • Website: https://www.newton-resources.com

Number of Employees


Location

  • Newton Resources Ltd
  • New World Tower
  • 15th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1231SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2011

Biography

Newton Resources Ltd, an investment holding company, mines, processes, and sells iron concentrates in the People’s Republic of China. The company operates through three segments: Iron Concentrate Business, Gabbro-Diabase and Stone Business, and Trading Business. It also supplies and trades in iron ores, coals, and other commodities. In addition, the company mines, processes, and sells railway ballast, highway crushed stone, and gabbro-diabase products. The company is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 13:21
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.