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As of today (2026-08-16), Nan Nan Resources Enterprise's weighted average cost of capital is 2.56%%. Nan Nan Resources Enterprise's ROIC % is 0.00% (calculated using TTM income statement data).
Nan Nan Resources Enterprise earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Nan Nan Resources Enterprise (HKSE:01229) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Nan Nan Resources Enterprise's weighted average cost of capital is 2.56%%. Nan Nan Resources Enterprise's ROIC % is 0.00% (calculated using TTM income statement data).
Nan Nan Resources Enterprise earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Nan Nan Resources Enterprise WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nan Nan Resources Enterprise WACC % Competitor Comparison
For the Thermal Coal subindustry, Nan Nan Resources Enterprise's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nan Nan Resources Enterprise WACC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Nan Nan Resources Enterprise's WACC % distribution charts can be found below:
* The bar in red indicates where Nan Nan Resources Enterprise's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Nan Nan Resources Enterprise's market capitalization (E) is HK$132.410 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Nan Nan Resources Enterprise's latest one-year semi-annual average Book Value of Debt (D) is HK$258.8297 Mil.
a) weight of equity = E / (E + D) = 132.410 / (132.410 + 258.8297) = 0.3384
b) weight of debt = D / (E + D) = 258.8297 / (132.410 + 258.8297) = 0.6616
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.692%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Nan Nan Resources Enterprise's beta is 0.4778.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.692% + 0.4778 * 6% = 7.5588%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Mar. 2026, Nan Nan Resources Enterprise's interest expense (positive number) was HK$5.91 Mil. Its total Book Value of Debt (D) is HK$258.8297 Mil.
Cost of Debt = 5.91 / 258.8297 = 2.2834%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 26.645 / 19.213 = 138.68%, which is higher than 100%. Therefore it's set to 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nan Nan Resources Enterprise (HKSE:01229) has a WACC % of 2.56% as of Aug. 16, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nan Nan Resources Enterprise and its competitors. This is 44% below median its historical median of 4.56. Over the past decade, Nan Nan Resources Enterprise's WACC % has ranged from 1.00 to 6.10. According to the industry distribution chart, Nan Nan Resources Enterprise ranks #16 out of 188 companies in the Other Energy Sources industry, placing it in the top 8.5%.
Is Nan Nan Resources Enterprise's WACC % too high?
Nan Nan Resources Enterprise's current WACC % of 2.56% is 44% below median its 10-year median of 4.56. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 6.10. The Other Energy Sources industry median WACC % is 7.61. Nan Nan Resources Enterprise's value of 2.56% is 66.4% below this industry median. Based on the distribution chart, Nan Nan Resources Enterprise ranks #16 out of 188 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers. Overall, Nan Nan Resources Enterprise has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nan Nan Resources Enterprise's WACC % compare to competitors?
According to the Other Energy Sources industry distribution chart, Nan Nan Resources Enterprise ranks #16 out of 188 companies for WACC %. This places Nan Nan Resources Enterprise in the top 9% of its industry — outperforming the majority of peers. The industry median WACC % is 7.61. Nan Nan Resources Enterprise's value of 2.56% is 66.4% below this benchmark. Historically, Nan Nan Resources Enterprise's own WACC % has ranged from 1.00 to 6.10 over the past decade. While the company's 10-year median is 4.56 vs. the industry median of 7.61, Nan Nan Resources Enterprise has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Other Energy Sources company?
The median WACC % among Other Energy Sources companies is 7.61, based on 188 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nan Nan Resources Enterprise's current WACC % of 2.56% is 66.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nan Nan Resources Enterprise and its competitors. For the Other Energy Sources industry, the median WACC % is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nan Nan Resources Enterprise's current WACC % is 2.56%, which is 44% below median its own 10-year median of 4.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nan Nan Resources Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Nan Nan Resources Enterprise (HKSE:01229) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.30, compared to a current price of HK$0.17 — trading 42.3% below its estimated fair value. The current WACC % is 2.56%, which is 44% below median its 10-year median of 4.56 and 66.4% below the Other Energy Sources industry median of 7.61. Nan Nan Resources Enterprise's overall GF Score™ is 49/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Nan Nan Resources Enterprise (HKSE:01229), the current WACC % is 2.56% as of Aug. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nan Nan Resources Enterprise (HKSE:01229) Overvalued in 2026?
Based on GuruFocus' analysis, Nan Nan Resources Enterprise stock appears to be undervalued.
The current stock price of HK$0.17 is trading 42.3% below its estimated GF Value™ of HK$0.30.
GuruFocus considers Nan Nan Resources Enterprise to be Possible Value Trap.
Key valuation signals for HKSE:01229:
WACC %: 2.56% (44% below median its 10-year median of 4.56)
GF Value™: HK$0.30 vs. price of HK$0.17 (42.3% below fair value)
Industry Position: 66.4% below the Other Energy Sources median (#16 of 188)
No single metric tells the full story. See the HKSE:01229 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nan Nan Resources Enterprise Ltd is an investment holding company. Along with subsidiary company engaged in the business segment of Coal mining business segment, which provides mining and sales of coal in Xinjiang, Mainland China; the Renewable energy business segment: service income from renewable energy solutions in Malaysia; and IT Services business segment: provision of IT Services in Hong Kong, Singapore, Malaysia, and the UK. It generates maximum revenue from the Coal mining business segment. The geographic operation is located in Mainland China, Hong Kong, Malaysia, Singapore, and the UK.
49GF Score
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