Tongguan Gold Group Ltd. (0340) AI Stock Analysis

• Market Cap: €11.04B
• Dividend Yield: 0.48%
• Average Volume (3M): 38.08M
• Price to Earnings (P/E): 22.6
• Beta (1Y): -0.04
• Revenue Growth: 6.76%
• EPS Growth: 239.14%
• Country: HK
• Employees: 435
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.08
• Shares Outstanding: 4,397,692,400
• 10 Day Avg. Volume: 42,866,596
• 30 Day Avg. Volume: 38,081,280
• PEG Ratio: 0.03
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 7.37
• 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: €3.23
• Price Target Upside: 19.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.00 ▲(11.11% Upside)

Tongguan Gold Group Ltd. demonstrates strong financial performance with significant improvements in revenue, profit margins, and cash flow, which are the most significant factors supporting the stock score. Technical analysis shows mixed signals, with potential for upward movement, but short-term weakness. The valuation is relatively high, which may limit upside potential. The absence of earnings call and corporate events data did not impact the score.

Tongguan Gold Group Ltd. Business Overview & Revenue Model

Company Description

Tongguan Gold Group Ltd. (0340) is a Hong Kong-based investment holding company primarily engaged in the exploration, mining, and production of gold. The company operates within the mining sector, focusing on gold and other precious metal resources. Its operations include the development of mining projects and the sale of gold and related products, leveraging its expertise in the extraction and processing of mineral resources.

How the Company Makes Money

Tongguan Gold Group Ltd. generates its revenue primarily through the extraction and sale of gold. The company engages in mining operations where it explores and develops gold mining projects to extract gold ore. After extraction, the gold is processed and refined into a marketable product, which is then sold to various buyers, including gold trading companies and jewelry manufacturers. Additionally, the company may enter into strategic partnerships or joint ventures with other mining firms or investment entities to enhance its operational capabilities and market reach. Factors such as global gold prices, mining efficiency, and cost management significantly influence the company's earnings.

Tongguan Gold Group Ltd. Financial Statement Overview

Summary

Tongguan Gold Group Ltd. shows strong financial health with significant improvements in revenue and profit margins. The balance sheet is stable with manageable debt levels, and cash flow improvements highlight enhanced liquidity and operational cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78B	1.60B	1.50B	1.24B	681.72M	327.71M
Gross Profit	834.57M	523.19M	167.88M	139.50M	236.86M	72.51M
EBITDA	761.99M	448.95M	158.48M	122.41M	265.95M	53.88M
Net Income	461.82M	211.14M	51.45M	50.34M	138.68M	-6.33M
Balance Sheet
Total Assets	5.57B	4.59B	4.55B	3.65B	3.90B	3.78B
Cash, Cash Equivalents and Short-Term Investments	780.35M	172.33M	157.89M	143.10M	157.70M	130.29M
Total Debt	576.65M	533.58M	565.36M	161.54M	179.77M	241.10M
Total Liabilities	2.36B	1.97B	2.09B	1.62B	1.72B	1.83B
Stockholders Equity	3.05B	2.48B	2.32B	1.89B	2.02B	1.82B
Cash Flow
Free Cash Flow	495.47M	270.57M	-141.56M	31.71M	115.96M	-4.70M
Operating Cash Flow	782.69M	508.35M	-35.50M	133.56M	217.31M	122.32M
Investing Cash Flow	-371.19M	-252.16M	-1.38M	-100.65M	-101.69M	-126.03M
Financing Cash Flow	162.68M	-240.54M	62.51M	-42.99M	-91.10M	42.19M

Tongguan Gold Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.70
• 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 2.7 is below the 20-day moving average (MA) of 2.80, above the 50-day MA of 2.54, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.41 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$166.45B	51.56	―	1.09%	36.74%	36.49%
0340	68 Neutral	€11.04B	22.63	―	0.48%	6.76%	239.14%
3330	67 Neutral	€20.03B	14.94	35.84%	1.09%	70.92%	249.45%
1818	64 Neutral	$98.62B	38.09	15.17%	0.19%	44.37%	125.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
8299	59 Neutral	HK$4.74B	60.87	12.45%	―	94.75%	5.75%
0621	47 Neutral	HK$1.27B	―	-1.05%	―	―	-16.04%

Tongguan Gold Group Ltd. Corporate Events

Tongguan Gold Group Ltd. Announces Strategic Acquisition

Tongguan Gold Group Ltd. has announced a Special General Meeting to approve a significant acquisition agreement. The company plans to acquire 100% of Wise Trend Investment Limited for HK$400 million, with the transaction settled through the issuance of 800 million new shares. This strategic move is expected to strengthen Tongguan Gold’s asset portfolio and enhance its market positioning in the gold industry.

The most recent analyst rating on (HK:0340) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Tongguan Gold Group Ltd. stock, see the HK:0340 Stock Forecast page.

Tongguan Gold Group Ltd. Announces Supplemental Agreement on Share Acquisition

Tongguan Gold Group Ltd. has entered into a supplemental agreement regarding its acquisition of 100% shares in a target company. The agreement includes a lock-up period for the consideration shares, preventing the vendor from selling or transferring these shares for 18 months post-completion without prior consent from the purchaser. This move aims to ensure stability and control over the shares during this period, maintaining the terms of the original Sale and Purchase Agreement.

The most recent analyst rating on (HK:0340) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Tongguan Gold Group Ltd. stock, see the HK:0340 Stock Forecast page.

Tongguan Gold Group Ltd. Appoints New CEO to Drive Strategic Growth

Tongguan Gold Group Ltd. has appointed Mr. Wang Dequan as its new Chief Executive Officer, effective October 1, 2025. Mr. Wang brings over a decade of experience in the gold mining sector, having held significant roles in geological exploration and industrial management. His appointment is expected to bolster the company’s strategic development in the gold mining industry, leveraging his expertise to support business growth and industry chain expansion.

The most recent analyst rating on (HK:0340) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Tongguan Gold Group Ltd. stock, see the HK:0340 Stock Forecast page.

Tongguan Gold Group Ltd. Reports Robust Financial Growth in First Half of 2025

Tongguan Gold Group Ltd. reported a significant increase in its financial performance for the first half of 2025, with a net profit of approximately HK$350 million, marking a 285% increase from the previous year. The company’s revenue also grew by 21% to approximately HK$1,029 million, indicating strong operational performance and improved market positioning.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Tongguan Gold Group Ltd. stock, see the HK:0340 Stock Forecast page.

Tongguan Gold Group Joins MSCI Global Small Cap Indexes

Tongguan Gold Group Limited, a company incorporated in Bermuda, has announced its inclusion in the MSCI Global Small Cap Indexes following the August 2025 Indexes Review by Morgan Stanley Capital International (MSCI). This inclusion is expected to enhance the company’s international visibility, attract global investors, and improve market liquidity, reflecting positively on the company’s value and operational strategy.

Tongguan Gold Group Schedules Board Meeting to Review Interim Results

Tongguan Gold Group Limited has announced a board meeting scheduled for August 25, 2025, to discuss and approve the company’s unaudited interim results for the first half of 2025 and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

Tongguan Gold Group Ltd. Announces Significant Profit Increase for H1 2025

Tongguan Gold Group Ltd. has issued a positive profit alert, indicating a significant increase in profits for the first half of 2025. The company expects profits to rise between 259% and 291% compared to the same period in 2024, driven by increased production and higher selling prices of gold. However, these results are preliminary and subject to finalization.