Gulf Resources, Inc. (GURE) | Investment Case

1. Company Snapshot

1.a. Company Description

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People's Republic of China.It provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants.The company also offers crude salt for use as a material in alkali and chlorine alkali production; and for use in the chemical, food and beverage, and other industries.

In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics.The company is based in Shouguang, the People's Republic of China.

Show Full description

1.b. Last Insights on GURE

Gulf Resources, Inc.'s recent performance was driven by a 23% increase in net revenues to $1,604,447 in the first quarter of 2025, compared to $1,307,062 in the same period last year. This growth was primarily attributed to the company's bromine segment, which has shown signs of improvement after reporting a net loss of $8,200,236 in 2024. Additionally, the company provided a business update on its bromine segment, highlighting its efforts to revitalize the division.

1.c. Company Highlights

Last Price	8.19
Change Percentage	72.78%
Open	3.6
Previous Close	4.74
Market Cap ( Millions)	11
Volume	9836
Year High	14.7
Year Low	2.04
M A 50	4.85
M A 200	6.36

FCF Yield	-4.41%
Dividend Yield	0.00%
ROE	-55.47%
Debt / Equity	0.00%
Net Debt / EBIDTA	69.68%
Price To Book	0
Price Earnings Ratio	-0.19
Price To FCF	-22.68
Price To sales	0.55
EV / EBITDA	-1.03

2. Transcript Summary

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3. NewsRoom

Comparing Gulf Resources (NASDAQ:GURE) & China Carbon Graphite Group (OTCMKTS:CHGI)

Dec -04

Source: defenseworld.net

Gulf Resources, Inc. Regains Compliance with Nasdaq Listing Requirements

Dec -02

Source: globenewswire.com

Analyzing SUMITOMO CHEMCL (OTCMKTS:SOMMY) and Gulf Resources (NASDAQ:GURE)

Oct -31

Source: defenseworld.net

Gulf Resources, Inc. Announces Reverse Stock Split

Oct -22

Source: globenewswire.com

Gulf Resources, Inc. Announces Second Quarter 2025 Unaudited Financial Results

Aug -13

Source: globenewswire.com

Gulf Resources Announces First Quarter 2025 Unaudited Financial Results

May -13

Source: globenewswire.com

Gulf Resources Provides Business Update on Bromine Segment

Apr -22

Source: globenewswire.com

Gulf Resources Provides Detailed Overview of the Economics of its Bromine Segment

Nov -20

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Bromine

Expected Growth: 4.5%

Growing demand for water treatment, increasing use in pharmaceuticals, and stringent regulations for flame retardants drive the bromine market growth.

Crude Salt

Expected Growth: 4.5%

Growing demand from oil and gas drilling, increasing adoption in water softening, and rising need for road ice control are driving the Crude Salt market growth.

Natural Gas

Expected Growth: 4.8%

Increasing demand for clean energy, growing electricity generation, and heating applications drive the growth of natural gas production in the Gulf of Mexico region.

7. Detailed Products

Bromine

A highly reactive element used in various applications such as water treatment, pharmaceuticals, and flame retardants.

Crystalline Salt

A natural mineral used as a raw material in various industries such as chemical manufacturing, oil and gas, and food processing.

Sodium Metal

A highly reactive metal used in various applications such as the production of tetraethyl lead, a fuel additive.

Anhydrous Alumina

A type of aluminum oxide used in various applications such as catalysts, ceramics, and refractories.

Chlorinated Paraffins

A type of chlorinated hydrocarbon used in various applications such as metalworking fluids, lubricants, and flame retardants.

8. Gulf Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Gulf Resources, Inc. is medium due to the availability of alternative energy sources, but the company's focus on renewable energy and sustainable practices reduces the likelihood of customers switching to substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low for Gulf Resources, Inc. due to the company's strong brand reputation and diversified customer base, making it difficult for customers to negotiate prices or demand better services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Gulf Resources, Inc. due to the company's dependence on a few key suppliers for raw materials, but the company's large scale of operations and long-term contracts mitigate the risk of supplier negotiations.

Threat Of New Entrants

The threat of new entrants is low for Gulf Resources, Inc. due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Gulf Resources, Inc. due to the competitive nature of the energy industry, with many established players and frequent price wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.44%
Debt Cost	3.95%
Equity Weight	96.56%
Equity Cost	5.21%
WACC	5.16%
Leverage	3.57%

11. Quality Control: Gulf Resources, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Oil-Dri

A-Score: 7.0/10

Value: 5.8

Growth: 9.0

Quality: 7.0

Yield: 4.0

Momentum: 10.0

Volatility: 6.0

1-Year Total Return ->

Sniezka

A-Score: 5.9/10

Value: 5.9

Growth: 3.9

Quality: 6.3

Yield: 6.9

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

AlzChem

A-Score: 5.4/10

Value: 1.8

Growth: 8.0

Quality: 7.2

Yield: 3.8

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Hawkins

A-Score: 5.2/10

Value: 1.6

Growth: 7.9

Quality: 5.6

Yield: 1.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

NTIC

A-Score: 4.3/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 3.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

Gulf Resources

A-Score: 3.5/10

Value: 9.4

Growth: 2.4

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.16%

Gulf Resources, Inc. - US40251W4087

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GURE

1.c. Company Highlights

Cheaper

Higher Growth

Weak Momentum

Average Yield

Fairly Valued

Lower Quality

Average Quality

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Bromine

Expected Growth: 4.5%

Crude Salt

Expected Growth: 4.5%

Natural Gas

Expected Growth: 4.8%

7. Detailed Products

Bromine

Crystalline Salt

Sodium Metal

Anhydrous Alumina

Chlorinated Paraffins

8. Gulf Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Gulf Resources, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.19$

Current Price

8.19$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA