Tongguan Gold Group Ltd. (0340) AI Stock Analysis

• Market Cap: HK$18.07B
• Dividend Yield: 0.44%
• Average Volume (3M): 38.08M
• Price to Earnings (P/E): 30.7
• Beta (1Y): -0.01
• 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: 5,313,692,400
• 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: HK$3.52
• Price Target Upside: 21.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$4.00 ▲(38.41% Upside)

The score is driven primarily by strong financial performance (margin expansion and sharply improved operating cash flow) and constructive trend signals (price above major moving averages with positive MACD). Offsetting factors include overbought technical readings (RSI/Stoch) and a relatively high P/E, partially balanced by the very high dividend yield.

Positive Factors

Operating cash flow turned positive

Sustained positive operating cash flow and strong free cash flow growth materially improve the firm's ability to fund capital expenditures, service debt, and return cash to shareholders without external financing. This increases financial flexibility across commodity cycles.

Material margin and profitability expansion

Significant margin expansion and steady revenue growth reflect better cost control and operational efficiency. Durable margin improvement enhances cash generation per ounce, supporting reinvestment and resilience to adverse price moves over the medium term.

Improving balance sheet and manageable leverage

Reduced debt and a healthy equity ratio provide a stronger capital base to absorb cyclical shocks. Manageable leverage lowers refinancing risk and supports project-level investments, enabling the company to pursue growth or weather downturns without forcing asset sales.

Negative Factors

High exposure to gold price volatility

Revenue and margins are tightly linked to gold price moves, creating persistent earnings and cashflow volatility. This structural commodity exposure complicates long-term planning for capex and dividends and increases the need for prudent hedging and balance sheet buffers.

Single-commodity business concentration

Concentration in gold limits diversification of revenue streams and raises sensitivity to sector-specific risks—resource depletion, regional permitting, and commodity cycles. Limited product/service diversity reduces resilience versus multi-commodity or downstream-integrated peers.

Equity base still needs strengthening

Though leverage has fallen, the firm notes a need to bolster equity. Modest ROE (8.5%) and capital intensity mean a thinner equity cushion could strain the company during prolonged price downturns or heavy capex phases, risking higher borrowing or dilution.

Tongguan Gold Group Ltd. Business Overview & Revenue Model

Company Description

Tongguan Gold Group Limited, an investment holding company, primarily engages in the exploration, mining, processing, and sale of gold and related products in the People's Republic of China. The company was formerly known as China Mining Resources Group Limited and changed its name to Tongguan Gold Group Limited in April 2018. Tongguan Gold Group Limited is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

Tongguan Gold Group generates revenue primarily through the sale of gold and gold-related products. The company’s revenue model is centered on mining operations, where it extracts gold from its mining sites and processes it to produce refined gold bars. Key revenue streams include the direct sale of gold to wholesalers and jewelers, as well as potential partnerships with other mining companies and distributors. Additionally, fluctuations in gold prices on the global market significantly impact the company’s earnings, as higher gold prices can lead to increased profitability. The company may also benefit from strategic alliances or joint ventures that enhance its operational capacity and market reach.

Tongguan Gold Group Ltd. Financial Statement Overview

Summary

Strong profitability and efficiency improvements: revenue grew 7.2% (2023 to 2024), net profit margin expanded to 13.2% (from 3.4%), and operating cash flow turned positive with strong cash conversion. Balance sheet is stable with manageable leverage, though equity strengthening could further reduce risk.

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: 2.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.89 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 2.99, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.07 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
0340	74 Outperform	HK$18.07B	30.66	―	0.44%	6.76%	239.14%
1818	68 Neutral	$128.23B	49.53	15.17%	0.16%	44.37%	125.87%
3330	67 Neutral	HK$29.88B	22.29	35.84%	1.40%	70.92%	249.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1787	55 Neutral	HK$265.67B	73.23	―	0.93%	36.74%	36.49%
8299	55 Neutral	HK$5.93B	54.69	14.71%	―	59.18%	28.00%
0621	43 Neutral	HK$998.33M	-44.72	-0.99%	―	―	-25.51%

Tongguan Gold Group Ltd. Corporate Events

Tongguan Gold Issues 6 Million New Shares on Partial Convertible Bond Conversion

Tongguan Gold Group Limited has announced that Tongfei Investment Limited has partially converted its existing convertible bond holding, exercising conversion rights over HK$6.6 million of principal at HK$1.10 per share, resulting in the issuance of 6 million new shares. The new shares, which represent about 0.11% of the company’s enlarged share capital and rank pari passu with existing shares, modestly increase Tongfei Investment’s equity position while reducing the outstanding principal of the convertible bond to HK$26.4 million, slightly shifting the company’s capital structure toward equity without materially diluting existing shareholders.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$4.00 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 Completes 100% Acquisition via Share Transaction

Tongguan Gold Group Limited has completed the acquisition of 100% equity interest in a target company through a share transaction conducted under its general mandate, with consideration settled by issuing new shares. Following the closing on 9 January 2026, the target company became a wholly owned subsidiary and its financial results will be fully consolidated into Tongguan Gold Group’s financial statements, potentially enlarging the group’s asset base and reinforcing its operational scale and control within its portfolio.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 Details Valuation Basis for China Mining Services Acquisition

Tongguan Gold Group Ltd. has provided additional details on its planned acquisition of 100% equity interest in a target company via an issue of consideration shares under its general mandate, clarifying that the value of the acquired structure is effectively derived from a downstream project company held through several intermediate holding entities with no standalone operations or material assets. The company explained that the target group’s business, conducted via a wholly foreign-owned enterprise in China, is not subject to PRC foreign investment restrictions and that its valuation was based on a comparable company analysis focused on listed mining-related engineering service providers in China, underscoring a structured approach to pricing the deal and highlighting its strategic focus on mining services within the Chinese market.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 Revamps Nomination Committee to Meet New Governance Code

Tongguan Gold Group Limited has adjusted the composition of its nomination committee, appointing executive director Ms. Feng Fangqing as a new member effective 19 December 2025. Following the change, the nomination committee will consist of three independent non-executive directors and two executive directors, a move made in response to recent amendments to Hong Kong’s Corporate Governance Code. The board believes the new structure will improve the committee’s effectiveness and diversity and further enhance the company’s overall corporate governance practices, aligning Tongguan Gold more closely with evolving regulatory expectations and stakeholder demands for stronger oversight.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 Sets Out Board and Committee Line-up

Tongguan Gold Group Limited has announced the current composition of its board of directors, which comprises five executive directors, led by chairman Jiang Zhiyong and chief financial officer Yeung Kwok Kuen, and three independent non-executive directors. The company has also clarified the membership and leadership of its four key board committees—Audit, Remuneration, Nomination, and Executive—highlighting the central roles played by its independent non-executive directors in overseeing audit and remuneration matters, while executive directors assume greater responsibility in nomination and executive management, reinforcing its corporate governance structure for stakeholders.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 Sets Formal Terms for Nomination Committee to Bolster Governance

Tongguan Gold Group Limited has formalised the terms of reference for its nomination committee, setting out its role in identifying and recommending suitable board candidates, overseeing board performance evaluations, and developing board nomination guidelines and a board diversity policy that aligns with applicable laws and listing requirements. The document establishes the committee’s composition—at least three members, a majority of whom must be independent non-executive directors with at least one member of a different gender—along with meeting frequency, quorum, secretarial support, notice requirements, minute-keeping standards and its obligation to report and respond to shareholder questions at the annual general meeting, signalling a strengthened governance and diversity framework that may enhance board effectiveness and investor confidence.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 to Acquire Mine Engineering Partner via Share Deal for Full Control

Tongguan Gold Group Ltd. has agreed to acquire 100% of a mine engineering and construction company that currently serves as one of its key service providers, in a share transaction that will be settled by issuing 110 million new shares under its existing general mandate. The deal, which will make the target a subsidiary and bring its results into Tongguan’s consolidated accounts, is intended to create operational synergies, cut costs, and strengthen the group’s control over mine safety and production processes; it represents about 2.07% of the enlarged share capital and, while small in Listing Rules terms, signals a strategic move to vertically integrate critical mining support functions, subject to the satisfaction of closing conditions.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 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 Secures Unanimous Shareholder Approval for Key Resolution

Tongguan Gold Group Ltd. announced that its shareholders have unanimously approved an Ordinary Resolution at a Special General Meeting held on October 31, 2025. The resolution, which received 100% of the votes in favor, pertains to the approval of an agreement and related transactions, including the issuance and allotment of Consideration Shares under a specific mandate. This approval signifies a strong consensus among shareholders and could potentially enhance the company’s strategic initiatives and market positioning.

The most recent analyst rating on (HK:0340) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Tongguan Gold Group Ltd. stock, see the HK:0340 Stock Forecast page.