Tongguan Gold Group Ltd. (HK:0340)
:0340
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Tongguan Gold Group Ltd.
(0340)
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Rating:67Neutral
Price Target:
HK$2.00
▼(-30.80% Downside)
Action:Downgraded
Date:05/29/26
Score is driven primarily by strong 2025 financial performance (rapid growth, margin expansion, improved returns, and low leverage), but is materially held back by weak technicals (price below key moving averages with negative momentum) and some caution from inconsistent cash-flow conversion and historical volatility. Valuation is reasonable but not strongly supported by yield.
Positive Factors
Margin & revenue strength
The sharp 2025 revenue increase and expanded gross/net margins reflect stronger operating leverage and improved extraction/processing economics. Durable margin improvement supports sustainable earnings, higher internal cash generation, and better reinvestment capacity across multiple reporting periods.
Negative Factors
Inconsistent cash conversion
Operating cash flow has lagged accounting profits and swung materially (negative in 2023), indicating working-capital volatility or accrual-driven earnings. This undermines the reliability of reported earnings as a source of cash, increasing funding and forecasting risk across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin & revenue strength
The sharp 2025 revenue increase and expanded gross/net margins reflect stronger operating leverage and improved extraction/processing economics. Durable margin improvement supports sustainable earnings, higher internal cash generation, and better reinvestment capacity across multiple reporting periods.
Read all positive factors
Tongguan Gold Group Ltd. (0340) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.46B
Dividend Yield0.44%
Average Volume (3M)38.08M
Price to Earnings (P/E)10.1
Beta (1Y)0.23
Revenue Growth49.31%
EPS Growth262.43%
CountryHK
Employees768
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.18
Shares Outstanding5,313,692,400
10 Day Avg. Volume42,866,596
30 Day Avg. Volume38,081,280
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)3.10
Price to Sales (P/S)5.16
P/FCF Ratio24.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$3.73Price Target Upside29.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.32
Revenue Forecast (FY)HK$3.68B
Tongguan Gold Group Ltd. Business Overview & Revenue Model
Company Description
Tongguan Gold Group Limited, an investment holding company, engages in the exploration, mining, processing, smelting, and sale of gold and related products in China. It is also involved in the gold recycling business, including the sale of physica...
How the Company Makes Money
Tongguan Gold Group Ltd. makes money primarily by selling gold produced from its mining operations. Revenue is generated when the company extracts gold-bearing ore, processes it (e.g., through beneficiation and refining or saleable concentrate/dor...
Tongguan Gold Group Ltd. Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.40B | 1.60B | 1.50B | 1.24B | 681.72M |
| Gross Profit | 1.31B | 523.19M | 167.88M | 139.50M | 236.86M |
| EBITDA | 1.22B | 448.95M | 158.48M | 122.41M | 265.95M |
| Net Income | 830.43M | 211.14M | 51.45M | 50.34M | 138.68M |
Balance Sheet | |||||
| Total Assets | 6.53B | 4.59B | 4.55B | 3.65B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 749.20M | 172.33M | 157.89M | 143.10M | 157.70M |
| Total Debt | 514.51M | 533.58M | 565.36M | 161.54M | 179.77M |
| Total Liabilities | 2.36B | 1.97B | 2.09B | 1.62B | 1.72B |
| Stockholders Equity | 3.99B | 2.48B | 2.32B | 1.89B | 2.02B |
Cash Flow | |||||
| Free Cash Flow | 513.65M | 270.57M | -141.56M | 31.71M | 115.96M |
| Operating Cash Flow | 981.47M | 508.35M | -35.50M | 133.56M | 217.31M |
| Investing Cash Flow | -401.88M | -252.16M | -1.38M | -100.65M | -101.69M |
| Financing Cash Flow | -105.68M | -240.54M | 62.51M | -42.99M | -91.10M |
Tongguan Gold Group Ltd. Technical Analysis
Negative
2.89
Price Trends
2.40
Negative
2.84
Negative
2.78
Negative
Market Momentum
-0.17
Negative
36.18
Neutral
24.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0340, the sentiment is Negative. The current price of 2.89 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 2.40, and above the 200-day MA of 2.78, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0340.
Tongguan Gold Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$54.83B | 10.68 | 27.52% | 0.54% | 48.74% | 56.71% | |
67 Neutral | HK$9.46B | 10.14 | 23.61% | 0.44% | 49.31% | 262.43% | |
67 Neutral | HK$250.91B | 14.09 | 26.67% | ― | ― | ― | |
63 Neutral | HK$58.95B | 15.03 | 17.43% | 0.16% | 56.67% | 139.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | HK$17.70B | 9.27 | 34.13% | 1.40% | 10.57% | 112.84% | |
56 Neutral | HK$113.03B | 20.35 | 15.21% | 0.93% | ― | ― |
* Basic Materials Sector Average
HK:0340
Tongguan Gold Group Ltd.
1.78
-0.29
-14.09%
HK:1818
Zhaojin Mining Industry Co
16.64
-3.65
-18.00%
HK:3330
Lingbao Gold Group Company Ltd. Class H
12.83
2.70
26.63%
HK:1787
Shandong Gold Mining Co., Ltd. Class H
17.25
-9.86
-36.37%
HK:6693
Chifeng Jilong Gold Mining Co., Ltd. Class H
23.40
-3.62
-13.40%
HK:2259
Zijin Gold International Company Limited
93.75
-25.43
-21.34%
Tongguan Gold Group Ltd. Corporate Events
Tongguan Gold Group Launches HK$300 Million On-Market Share Buyback Plan
Jun 16, 2026
Tongguan Gold Group Ltd. has approved an on-market share repurchase plan of up to HK$300 million under an existing mandate that allows buybacks of up to 10% of its issued shares. The programme will run until the next annual general meeting or an e...
Tongguan Gold Shareholders Approve All AGM Resolutions and Final Dividend
May 29, 2026
Tongguan Gold Group shareholders approved all resolutions at the 29 May 2026 annual general meeting, including adoption of the 2025 audited accounts and a final dividend of HK3.2 cents per share, underscoring broad investor support for the company...
Tongguan Gold Group Sets AGM to Approve Dividend, Board Mandates and Share Issuance Authority
Apr 16, 2026
Tongguan Gold Group has convened its annual general meeting for 29 May 2026 in Hong Kong, where shareholders will review and adopt the audited financial statements for the year ended 31 December 2025 and vote on a proposed final dividend of HK3.2 ...
Tongguan Gold Group Declares Final Dividend for 2025
Mar 27, 2026
Tongguan Gold Group Limited has declared a final ordinary cash dividend of HKD 0.032 per share for the financial year ended 31 December 2025, underscoring its intention to return cash to shareholders. The payout, subject to shareholder approval on...
Tongguan Gold Profit Soars on Higher Gold Output, Dividend Raised
Mar 27, 2026
Tongguan Gold Group Limited reported a strong set of final results for the year ended 31 December 2025, underpinned by a rise in mine-produced gold sales volume from about 2.22 tonnes in 2024 to approximately 2.96 tonnes in 2025. Revenue climbed 4...
Tongguan Gold Group Sets Out Board and Committee Structure
Mar 27, 2026
Tongguan Gold Group Limited has outlined the composition of its board of directors, confirming Chairman Jiang Zhiyong, CEO Wang Dequan, CFO Yeung Kwok Kuen and four other executives, alongside three independent non-executive directors. The announc...
Tongguan Gold Group Elevates CEO Wang Dequan to Executive Director Role
Mar 27, 2026
Tongguan Gold Group has appointed its chief executive officer, Wang Dequan, as an executive director with effect from 27 March 2026, consolidating leadership roles at the top of the company. Wang, a professor-level senior engineer with a PhD and e...
Tongguan Gold Group Moves to Modernise Bye‑Laws for Paperless and Uncertificated Regime
Mar 27, 2026
Tongguan Gold Group Limited plans to overhaul its constitutional documents by replacing its existing bye‑laws with a new set designed to align with Hong Kong’s expanded paperless listing regime and the electronic dissemination of corpo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.