Mongolia Energy (0276) AI Stock Analysis

• Market Cap: HK$120.40M
• Dividend Yield: N/A
• Average Volume (3M): 158.54K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.52
• Revenue Growth: -9.83%
• EPS Growth: -182.04%
• Country: HK
• Employees: 875
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Coal
• EPS (TTM): -4.96
• Shares Outstanding: 188,125,850
• 10 Day Avg. Volume: 163,332
• 30 Day Avg. Volume: 158,544
• PEG Ratio: <0.01
• Price to Book (P/B): -0.02
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 0.49
• 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: HK$0.47
• Price Target Upside: -26.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.50 ▼(-21.88% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues, high leverage, and liquidity issues. Technical analysis shows a positive short-term trend, but valuation remains unattractive due to a negative P/E ratio and lack of dividends. The absence of earnings call and corporate events data limits additional insights.

Mongolia Energy Business Overview & Revenue Model

Company Description

Mongolia Energy (0276) is a diversified energy company primarily engaged in the exploration, development, and production of coal and other energy resources in Mongolia. The company focuses on the mining and sale of thermal and coking coal, catering to both domestic and international markets. In addition to its coal operations, Mongolia Energy is exploring opportunities in renewable energy sectors, positioning itself to capitalize on the growing demand for sustainable energy solutions.

How the Company Makes Money

Mongolia Energy generates revenue primarily through the sale of coal products, which includes both thermal coal used for power generation and coking coal utilized in steel production. The company operates coal mines and sells its products to local and international customers, including major industrial players in China. Revenue is also supplemented through potential joint ventures or partnerships with other energy firms, enhancing its operational capabilities and market reach. The company’s earnings are influenced by global coal prices, demand from key markets, and its ability to maintain efficient production 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.32B	2.86B	3.17B	2.91B	1.56B	858.42M
Gross Profit	1.25B	851.17M	1.18B	1.09B	600.09M	301.70M
EBITDA	2.92B	-452.03M	2.93B	-688.09M	317.24M	2.36B
Net Income	1.78B	-1.38B	1.68B	-1.60B	-349.05M	1.80B
Balance Sheet
Total Assets	4.11B	3.08B	4.22B	2.80B	3.62B	3.54B
Cash, Cash Equivalents and Short-Term Investments	100.41M	134.81M	128.70M	111.86M	114.66M	108.33M
Total Debt	5.23B	5.44B	5.26B	5.97B	5.67B	5.49B
Total Liabilities	7.23B	7.15B	6.90B	7.14B	6.33B	5.93B
Stockholders Equity	-3.12B	-4.08B	-2.69B	-4.34B	-2.71B	-2.39B
Cash Flow
Free Cash Flow	478.89M	200.18M	443.43M	601.16M	186.60M	39.86M
Operating Cash Flow	596.45M	320.69M	562.88M	827.37M	295.96M	98.74M
Investing Cash Flow	-111.49M	-116.43M	-113.28M	-223.34M	-109.37M	-57.38M
Financing Cash Flow	-486.93M	-212.68M	-410.48M	-603.43M	-180.07M	-46.07M

Mongolia Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.64
• 50DMA: Negative
• 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 Neutral. The current price of 0.64 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.64, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0276.

Mongolia Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0975	79 Outperform	HK$8.78B	4.90	19.62%	―	0.16%	-4.09%
Sector *	58 Neutral	HK$18.21B	5.33	-7.29%	3.72%	-4.08%	-48.58%
0065	47 Neutral	HK$112.54M	―	-35.91%	―	-3.74%	-65.92%
0276	47 Neutral	HK$120.40M	0.07		―	-9.83%	-182.04%
1738	46 Neutral	$244.36M	―		―	-69.69%	-9.41%
1393	44 Neutral	HK$299.34M	―	-44.69%	―	-13.27%	14.98%

Mongolia Energy Corporate Events

Mongolia Energy Faces Significant Tax Reassessment in Mongolia

Mongolia Energy Corporation Limited has announced that its subsidiary, MoEnCo, has received a decision from the TDRC regarding a tax reassessment for the fiscal years 2017 to 2020, amounting to approximately HK$902.6 million. The company plans to contest this decision in the Administrative Court of Mongolia, while also engaging with the GTO to prevent enforcement actions that could impact its mining operations. The outcome of this legal process could significantly affect the company’s financial standing and operational capabilities in Mongolia.

Mongolia Energy Announces 2025 Annual General Meeting and Share Issuance Plans

Mongolia Energy Corporation Limited, a company incorporated in Bermuda, has announced its annual general meeting to be held on August 27, 2025, in Hong Kong. The meeting will address standard business matters such as reviewing financial statements, re-electing directors, and appointing auditors. Additionally, a resolution will be considered to authorize the directors to allot and issue additional shares, which could impact the company’s capital structure and shareholder value.

Mongolia Energy Resolves Tax Dispute with Deferred Payment Plan

Mongolia Energy Corporation Limited announced that its subsidiary, MoEnCo, has successfully negotiated a deferred payment proposal with the Mongolian Tax Authority (GTO), resulting in the release of its frozen bank accounts. MoEnCo made an initial payment of approximately MNT 31.6 billion to GTO, with plans to settle the remaining amount in installments over six months. The proposal includes pledging raw coking coal as security for the payments. Despite an oral ruling by the TDRC favoring GTO in a tax dispute, the company asserts that adequate tax provisions have been made, and the decision will not impact its profit and loss accounts.

Mongolia Energy Strengthens Governance with New Appointment

Mongolia Energy Corporation Limited has announced the appointment of Ms. Yvette Ong, the managing director and executive director, as a member of its Nomination Committee, effective from June 27, 2025. This appointment is part of the company’s ongoing efforts to strengthen its governance structure, with Ms. Ong joining a diverse group of directors on the committee, which may enhance decision-making processes and strategic direction.

Mongolia Energy Corporation Announces Board Composition

Mongolia Energy Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes within the organization.

Mongolia Energy Corporation Enhances Governance with New Nomination Committee

Mongolia Energy Corporation Limited has established a Nomination Committee as part of its corporate governance structure. The committee, composed of directors including independent non-executive directors, is tasked with reviewing the board’s composition and diversity, recommending changes, assessing director independence, and handling succession planning. This move aims to enhance the company’s governance practices and ensure a diverse and effective board, potentially impacting its strategic direction and stakeholder confidence.

Mongolia Energy Reports Significant Financial Loss for 2025

Mongolia Energy Corporation Limited reported a significant financial downturn for the year ending March 31, 2025, with a net loss of HK$1,376,650,000 compared to a profit of HK$1,677,921,000 the previous year. The decline was attributed to various factors, including a decrease in revenue, increased impairment losses, and substantial finance costs, impacting the company’s overall financial health and market positioning.

Mongolia Energy Corporation Schedules Board Meeting for Financial Results and Dividend Decision

Mongolia Energy Corporation Limited has announced a board meeting scheduled for June 25, 2025, to approve the final results for the year ended March 31, 2025, and to consider the payment of a final dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Mongolia Energy Completes 2025 Convertible Notes Issuance

Mongolia Energy Corporation Limited has successfully completed the issuance of its 2025 Convertible Notes, settling all outstanding principals and accrued interests of the existing notes. This financial maneuver is expected to streamline the company’s debt structure and potentially impact its shareholding structure, as outlined in various conversion scenarios.

Mongolia Energy Faces Tax Appeal Delay and Asset Risks

Mongolia Energy Corporation Limited has announced a postponement of the TDRC re-hearing for its tax appeal in Mongolia, now scheduled for May 26, 2025. The company is facing tax issues, with a significant amount of its funds frozen and partially transferred to the Mongolian tax authority, which retains the right to seize assets if outstanding taxes remain unpaid.

Mongolia Energy Faces Financial and Tax Challenges Amid Declining Coal Prices

Mongolia Energy Corporation Limited announced a decrease in its unaudited revenue and gross profit for the financial year ending March 31, 2025, primarily due to declining coal prices. The company is also facing potential impairment losses related to its Khushuut mine assets, which could significantly impact its financial statements, although these losses are non-cash adjustments. Additionally, the company is dealing with tax issues in Mongolia, with significant outstanding tax demands from the Mongolian General Tax Office. The outcome of a re-hearing by the Tax Dispute Resolution Committee could affect the company’s operations, as MoEnCo’s bank accounts have been frozen, and further actions could be taken if the tax issues remain unresolved.

Mongolia Energy’s Subscription Agreements Approved at SGM

Mongolia Energy Corporation Limited announced that the resolution regarding the Subscription Agreements was passed unanimously at the Special General Meeting held on 16 May 2025. The completion of these agreements, involving new 3% convertible notes by Golden Infinity Co., Ltd. and Chow Tai Fook Nominee Limited, is subject to certain conditions. This development could potentially impact the company’s financial structure and market positioning, with stakeholders advised to exercise caution.

Mongolia Energy Renews Hong Kong Office Tenancy Agreement

Mongolia Energy Corporation Limited has renewed a tenancy agreement for its office premises in Hong Kong, with a wholly-owned subsidiary acting as the tenant. The agreement, effective from May 8, 2025, to May 7, 2027, involves a monthly rent of HK$288,000. This transaction is classified as a disclosable and connected transaction under Hong Kong’s Listing Rules due to its financial magnitude and the landlord’s connection to the company. The agreement was negotiated at arm’s length and is deemed fair and beneficial for the company and its shareholders.