Tongguan Gold Group Ltd. (0340) AI Stock Analysis

• Market Cap: HK$9.24B
• Dividend Yield: 0.57%
• Average Volume (3M): 22.79M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.06
• Revenue Growth: 7.19%
• EPS Growth: 262.94%
• Country: HK
• Employees: 435
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Gold
• EPS (TTM): 0.05
• Shares Outstanding: 4,397,692,400
• 10 Day Avg. Volume: 16,428,841
• 30 Day Avg. Volume: 22,792,650
• PEG Ratio: -0.39
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.09
• 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$2.48
• Price Target Upside: 15.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: HK$2.50 ▲(16.28%Upside)

The overall stock score reflects strong financial performance with solid revenue and profit growth. However, the valuation suggests potential overvaluation risks, and technical indicators show neutral momentum. The absence of earnings call and corporate events data slightly limits comprehensive assessment.

Tongguan Gold Group Ltd. Business Overview & Revenue Model

Company Description

Tongguan Gold Group Ltd. (0340) is a Hong Kong-based company primarily engaged in the exploration, mining, and processing of gold and other precious metals. The company operates in the mining sector, focusing on the development and operation of gold mining projects, primarily in China. Tongguan Gold Group Ltd. is committed to sustainable mining practices and aims to enhance shareholder value through efficient resource management and project development.

How the Company Makes Money

Tongguan Gold Group Ltd. generates revenue primarily through the extraction and sale of gold and other precious metals. The company's key revenue streams include the production and sale of gold bullion, as well as by-products from its mining operations. Tongguan Gold Group Ltd. may also engage in strategic partnerships or joint ventures with other mining companies to optimize its operations and access additional resources. Additionally, fluctuations in global gold prices and market demand significantly impact the company's earnings, as they influence the value of its gold production.

Tongguan Gold Group Ltd. Financial Statement Overview

Summary

Tongguan Gold Group Ltd. shows strong financial health with robust revenue growth, improved profit margins, and positive cash flow. The balance sheet indicates stability with moderate debt levels. These factors suggest strong operational efficiency and financial flexibility.

Income Statement

Tongguan Gold Group Ltd. has demonstrated strong revenue growth, with total revenue increasing from 1.5 billion in 2023 to 1.6 billion in 2024, representing a 7.2% growth. The gross profit margin improved significantly, indicating better cost management. Net profit margin rose to 13.2%, a substantial improvement from 3.4% in the previous year. EBIT and EBITDA margins also reflect robust operational performance. These improvements signal strong profitability and operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio. Total debt decreased slightly, improving financial leverage. Return on equity improved to 8.5% in 2024, showing better utilization of shareholder funds. The equity ratio stands at 54.0%, indicating good financial stability. However, there is room for further strengthening equity positions to mitigate risks.

Cash Flow

Operating cash flow has improved dramatically, turning positive in 2024 from negative in 2023, indicating better cash generation from operations. Free cash flow growth is significant, indicating efficient capital expenditure management. The operating cash flow to net income ratio is strong, demonstrating good cash conversion. These factors reflect a solid cash position and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.50B	1.24B	681.72M	327.71M
Gross Profit	523.19M	167.88M	139.50M	236.86M	72.51M
EBITDA	448.95M	158.48M	122.41M	265.95M	53.88M
Net Income	211.14M	51.45M	50.34M	138.68M	-1.51M
Balance Sheet
Total Assets	4.59B	4.55B	3.65B	3.90B	3.78B
Cash, Cash Equivalents and Short-Term Investments	172.33M	157.89M	143.10M	157.70M	130.29M
Total Debt	533.58M	565.36M	161.54M	179.77M	241.10M
Total Liabilities	1.97B	2.09B	1.62B	1.72B	1.83B
Stockholders Equity	2.48B	2.32B	1.89B	2.02B	1.82B
Cash Flow
Free Cash Flow	270.57M	-141.56M	31.71M	115.96M	-4.70M
Operating Cash Flow	508.35M	-35.50M	133.56M	217.31M	122.32M
Investing Cash Flow	-252.16M	-1.38M	-100.65M	-101.69M	-126.03M
Financing Cash Flow	-240.54M	62.51M	-42.99M	-91.10M	42.19M

Tongguan Gold Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.15
• 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:0340, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.08, and above the 200-day MA of 0.99, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0340.

Tongguan Gold Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1787	76 Outperform	HK$144.98B	45.58	10.43%	0.03%	36.74%	36.49%
0340	71 Outperform	HK$9.24B	40.46		0.57%	7.19%	262.94%
1818	70 Outperform	$74.04B	46.16	11.20%	0.01%	35.04%	102.30%
3330	68 Neutral	€13.10B	16.90	22.79%	0.08%	10.21%	77.99%
8299	66 Neutral	HK$2.12B	30.98	12.45%	―	957.74%	194.12%
Sector *	59 Neutral	HK$17.74B	4.77	-5.52%	3.45%	-3.57%	-61.41%
0621	47 Neutral	HK$980.18M	―	-1.05%	―	―	64.29%

Tongguan Gold Group Ltd. Corporate Events

Tongguan Gold Group Finalizes Streaming Agreement with Zijin Metal

Tongguan Gold Group Ltd. has entered into a definitive precious metals purchase agreement with Zijin Metal Company Limited, formalizing a previously announced streaming transaction. This agreement is part of the company’s strategy to strengthen its financial position and enhance its operational capabilities in the gold mining sector. The transaction does not constitute a notifiable transaction under Hong Kong’s listing rules, indicating a streamlined process with minimal regulatory hurdles.

Tongguan Gold Group Ltd. AGM Resolutions Passed

Tongguan Gold Group Ltd. held its Annual General Meeting on May 30, 2025, where all proposed resolutions were passed by shareholder vote. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting mandates for share issuance and repurchase. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic initiatives.

Tongguan Gold Group Ltd. Grants Share Options to Directors and Employees

Tongguan Gold Group Ltd. has announced the grant of 81,540,000 share options under its 2024 Share Option Scheme. These options, representing approximately 1.85% of the total shares in issue, are allocated to certain directors and employee participants, with a notable portion going to directors. The exercise price is set at HK$1.92 per share, matching the closing price on the grant date. This move is likely aimed at incentivizing key personnel and aligning their interests with the company’s long-term goals.