| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9.10 | 119 |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
China Natural Resources, Inc. (NASDAQ: CHNR) is a Hong Kong-based company engaged in the exploration and mining of metal properties in China, primarily focusing on lead, silver, and other nonferrous metals. The company holds interests in the Moruogu Tong mine in Inner Mongolia, covering 7.81 square kilometers. Additionally, CHNR provides rural wastewater treatment equipment and related engineering, procurement, and construction (EPC) services. Operating in the industrials sector under waste management, CHNR is a subsidiary of Feishang Group Limited. Despite its small market capitalization (~$5.7M), the company faces challenges, including negative net income and no reported revenue in its latest fiscal year. Its dual focus on mining and wastewater treatment positions it in niche segments of China's resource and environmental sectors.
China Natural Resources (CHNR) presents a high-risk investment due to its lack of revenue, negative earnings (-$12.4M net income in FY2023), and small market cap. While its mining assets in Inner Mongolia and wastewater treatment services offer exposure to China's resource and environmental sectors, operational inefficiencies and financial instability raise concerns. The company’s low beta (0.255) suggests limited correlation with broader market movements, but its illiquidity and unprofitability deter mainstream investors. Potential upside hinges on commodity price rebounds or strategic shifts under parent company Feishang Group. Investors should weigh these risks against speculative growth in China's mining or environmental infrastructure demand.
CHNR operates in two distinct but challenging niches: nonferrous metal mining and rural wastewater treatment in China. In mining, its competitive position is weak due to limited scale (single mine) and operational losses, lagging behind larger domestic players like Zijin Mining or MMG Ltd. The wastewater treatment segment, while aligned with China’s environmental policies, faces stiff competition from specialized firms such as Beijing Enterprises Water Group. CHNR’s primary advantage is its asset ownership in Inner Mongolia, but its lack of revenue and profitability undermines its ability to invest in exploration or technology. The company’s dual-business model lacks synergy, and its reliance on Feishang Group for support suggests dependency rather than organic growth. Without significant capital infusion or operational turnaround, CHNR risks remaining a marginal player in both sectors.