Mongolia Energy (0276) AI Stock Analysis

• Market Cap: $118.52M
• Dividend Yield: N/A
• Average Volume (3M): 315.25K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.46
• Revenue Growth: 27.71%
• EPS Growth: N/A
• Country: HK
• Employees: 875
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Coal
• EPS (TTM): -4.96
• Shares Outstanding: 188,125,850
• 10 Day Avg. Volume: 112,598
• 30 Day Avg. Volume: 315,253
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.33
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ―

Mongolia Energy's overall stock score of 61.5 reflects a mixed financial performance with solid income recovery but significant balance sheet risks. Technical indicators suggest a neutral outlook, while the stock's low P/E ratio indicates potential undervaluation. The absence of a dividend and potential liquidity challenges are notable concerns.

Mongolia Energy Business Overview & Revenue Model

Company Description

Mongolia Energy Corporation Limited (MEC, 0276) is a resource exploration and mining company primarily engaged in coal mining activities. The company focuses on the exploration, development, and production of coal resources in Mongolia and Xinjiang, China. MEC's core operations revolve around producing and supplying high-quality coking and thermal coal to meet the energy demands of its key Asian markets.

How the Company Makes Money

Mongolia Energy Corporation generates revenue primarily through the extraction and sale of coal. The company's revenue model hinges on mining coal from its various concessions, processing it as needed, and then selling it to domestic and international markets. MEC's key revenue streams include the sale of coking coal, which is used in steel production, and thermal coal, used for electricity generation. The company leverages strategic partnerships with logistics providers to facilitate the efficient transportation of coal to its customers. Additionally, MEC's earnings are influenced by factors such as global coal market prices, demand fluctuations, and operational efficiencies in its mining operations.

Mongolia Energy Financial Statement Overview

Summary

Mongolia Energy shows a mixed financial picture. The income statement highlights a solid recovery and profitability improvement, while the balance sheet reveals high financial risk due to negative equity and leverage. Cash flow metrics indicate reasonable cash generation but also suggest potential liquidity issues. The company needs to address its balance sheet weaknesses to sustain growth.

Income Statement

Mongolia Energy demonstrated a strong rebound in its financial performance, with Total Revenue increasing from HK$2.91 billion to HK$3.17 billion, reflecting a revenue growth rate of 9.21%. The Gross Profit Margin improved to 37.30%, and the Net Profit Margin turned positive at 52.87% from a negative position, indicating enhanced profitability. Notably, the EBIT Margin remained stable at 26.71%, while EBITDA Margin showed a substantial improvement. These metrics suggest a positive growth trajectory and profitability, although past volatility in EBITDA indicates potential risk.

Balance Sheet

The company's balance sheet reveals high leverage, with a Debt-to-Equity Ratio that cannot be calculated due to negative equity, signifying financial instability. Return on Equity (ROE) is also not calculable, but the negative equity indicates ongoing financial distress. The Equity Ratio is negative due to negative stockholders' equity, suggesting significant financial risk. Despite the increase in Total Assets, the overall leverage and negative equity present substantial concerns.

Cash Flow

Operating Cash Flow decreased to HK$562.88 million, yet Free Cash Flow remained positive at HK$443.43 million, albeit lower than the previous period. The Free Cash Flow to Net Income Ratio was positive, indicating efficient cash conversion. However, the Operating Cash Flow to Net Income Ratio indicates some volatility. Although cash flow generation is relatively stable, the decline in cash inflow points to potential liquidity challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	3.32B	3.17B	2.91B	1.56B	858.42M	1.12B
Gross Profit	1.25B	1.18B	1.09B	600.09M	301.70M	479.24M
EBITDA	2.92B	2.93B	-688.09M	317.24M	2.36B	2.36B
Net Income	1.78B	1.68B	-1.60B	-349.05M	1.80B	1.44B
Balance Sheet
Total Assets	4.11B	4.22B	2.80B	3.62B	3.54B	2.14B
Cash, Cash Equivalents and Short-Term Investments	104.22M	128.70M	111.86M	114.66M	108.33M	113.38M
Total Debt	5.23B	5.26B	5.97B	5.67B	5.49B	4.14B
Total Liabilities	7.23B	6.90B	7.14B	6.33B	5.93B	4.50B
Stockholders Equity	-3.12B	-2.69B	-4.34B	-2.71B	-2.39B	-2.35B
Cash Flow
Free Cash Flow	478.89M	443.43M	601.16M	186.60M	39.86M	241.38M
Operating Cash Flow	596.45M	562.88M	827.37M	295.96M	98.74M	328.24M
Investing Cash Flow	-111.49M	-113.28M	-223.34M	-109.37M	-57.38M	-84.37M
Financing Cash Flow	-486.93M	-410.48M	-603.43M	-180.07M	-46.07M	-246.59M

Mongolia Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0276, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.55, and below the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 27.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0276.

Mongolia Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1088	80 Outperform	$855.35B	9.86	12.78%	7.90%	-7.73%	-6.97%
1898	76 Outperform	$151.67B	6.30	12.03%	6.03%	-4.04%	-12.32%
1171	64 Neutral	$113.33B	5.27	22.05%	7.93%	2.87%	―
0276	62 Neutral	$118.52M	0.07		―	27.71%	―
1164	60 Neutral	$19.61B	57.33	13.49%	0.27%	17.13%	-31.19%
Sector *	58 Neutral	HK$17.25B	4.63	-6.43%	5.11%	-3.18%	-62.89%
1918	45 Neutral	$15.97B	―	-49.73%	―	-52.23%	-42.48%

Mongolia Energy Corporate Events

Mongolia Energy Plans Convertible Notes Issuance

Mongolia Energy Corporation Limited has announced a special general meeting to discuss the approval of subscription agreements with Golden Infinity Co., Ltd. and Chow Tai Fook Nominee Limited. The agreements involve the issuance of 3% convertible notes, allowing conversion into ordinary shares at a set price, which could impact the company’s financial structure and shareholder value.

Mongolia Energy Delays Circular Dispatch for Convertible Notes Subscription

Mongolia Energy Corporation Limited announced a delay in the dispatch of a circular related to the subscription of new convertible notes by Golden Infinity Co., Ltd. and Chow Tai Fook Nominee Limited. The company requires additional time to finalize the information, postponing the dispatch date to on or before April 25, 2025, which may impact the timeline for stakeholders involved in the transaction.