North Mining Shares Co., Ltd. (0433) AI Stock Analysis

• Market Cap: HK$1.14B
• Dividend Yield: N/A
• Average Volume (3M): 10.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 0.41%
• EPS Growth: 83.35%
• Country: HK
• Employees: 678
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 15,002,141,000
• 10 Day Avg. Volume: 12,472,000
• 30 Day Avg. Volume: 10,548,075
• PEG Ratio: 0.01
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 1.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.07 ▼(-8.75% Downside)

The overall stock score is primarily driven by the company's poor financial performance, characterized by persistent losses and negative equity. Technical indicators also suggest bearish momentum, while valuation metrics are unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events does not influence the score.

Positive Factors

Gross margin improvement

A sustained increase in gross margins to 11.5% suggests better cost control or improved product mix. Over 2-6 months this can improve operating leverage potential, giving the business a clearer path to narrowing losses if revenue stabilizes and fixed costs are absorbed.

Recent top-line growth

A notable positive revenue growth rate indicates the company can expand sales, which supports scale benefits and margin improvement over time. If sustained, stronger top-line trends enable investment in operations and help absorb fixed costs, improving long-run viability.

Industrial materials end-market exposure

Operating in industrial materials ties the company to construction and manufacturing demand, which is structurally driven. This provides a durable demand floor and potential cyclical recovery opportunities that can support revenue stability over the medium term.

Negative Factors

Negative equity and solvency risk

Persistent negative equity indicates liabilities exceed assets, preventing straightforward leverage metrics and signaling solvency risk. This structural weakness limits access to traditional financing, increases refinancing risk, and constrains strategic flexibility.

Consistent operating losses

Ongoing net losses and negative EBIT margins erode capital and hinder reinvestment. Over months this reduces retained earnings, weakens resilience to downturns, and forces reliance on external funding, which can be hard to secure with the current profitability profile.

Weak cash generation and free cash flow

Material difficulties in producing consistent operating and free cash flow limit the firm's ability to fund capex, service debt, and support working capital. Structural cash-flow weakness increases liquidity risk and reduces capacity for strategic investment.

North Mining Shares Co., Ltd. Business Overview & Revenue Model

Company Description

North Mining Shares Company Limited, an investment holding company, engages in the exploitation, exploration, and trading of mineral resources in the People's Republic of China and internationally. It operates through Mining Operation, Property Management Operation, and Chemical Trading Operation segments. The company has exploitation rights in the molybdenum mine and potassium feldspar mine located in the People's Republic of China. It is also involved in the provision of property management activities; and sale of molybdenum concentrates, as well as manufactures and sells chemical products. The company was incorporated in 1995 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

North Mining Shares Co., Ltd. generates revenue primarily through the extraction and sale of mineral resources. The company's key revenue streams include the sale of mined minerals, such as gold and copper, which are sold to various markets and industries. Additionally, the company may engage in joint ventures or partnerships with other mining firms, which can provide further opportunities for revenue generation through shared resources and expertise. Factors contributing to its earnings include global commodity prices, operational efficiency in mining activities, and the successful execution of exploration projects that lead to increased resource reserves.

North Mining Shares Co., Ltd. Financial Statement Overview

Summary

North Mining Shares Co., Ltd. faces significant financial challenges, with persistent net losses, negative equity, and high leverage. Despite slight improvements in gross profit margins, the overall financial health is concerning due to unstable revenue and cash flow generation.

Income Statement

The company has faced substantial challenges in profitability, with consistently negative net income and EBIT margins over the years. While gross profit margins have improved slightly from 6.4% in 2019 to 11.5% in 2024, the net profit margin remains negative, indicating ongoing operational inefficiencies. The revenue growth rate has been volatile, with a significant drop in 2024 compared to 2023, suggesting instability in revenue generation.

Balance Sheet

The balance sheet shows a concerning financial structure, with negative stockholders' equity since 2020, reflecting potential insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, highlighting excessive leverage. The equity ratio is also negative, indicating that liabilities exceed assets, posing a risk to stakeholders.

Cash Flow

Cash flow statements reveal challenges in generating positive cash flow from operations, with operating cash flow fluctuating significantly over the years. The company has struggled to maintain positive free cash flow, and the operating cash flow to net income ratio is not applicable due to persistent net losses. Free cash flow growth is not calculable due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	951.80M	1.11B	1.53B	1.30B	1.35B	650.91M
Gross Profit	270.58M	127.69M	92.41M	187.08M	145.94M	71.07M
EBITDA	222.70M	-187.20M	-1.56B	-38.09M	-97.17M	-3.12B
Net Income	25.13M	-68.49M	-1.63B	-162.64M	-357.73M	-2.60B
Balance Sheet
Total Assets	1.56B	1.54B	1.76B	2.02B	2.12B	2.05B
Cash, Cash Equivalents and Short-Term Investments	54.81M	15.25M	5.94M	11.34M	20.73M	15.76M
Total Debt	427.25M	433.65M	704.37M	1.75B	1.80B	1.80B
Total Liabilities	2.04B	2.11B	2.10B	3.52B	3.39B	2.87B
Stockholders Equity	115.21M	43.29M	-39.97M	-1.33B	-1.14B	-800.35M
Cash Flow
Free Cash Flow	0.00	73.59M	-39.05M	-7.18M	155.87M	-61.96M
Operating Cash Flow	0.00	201.08M	-35.64M	81.84M	233.58M	46.77M
Investing Cash Flow	0.00	-127.69M	-6.46M	-89.09M	-77.71M	-107.40M
Financing Cash Flow	0.00	-63.25M	35.83M	6.76M	-155.04M	62.19M

North Mining Shares Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 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:0433, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 79.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0433.

North Mining Shares Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0769	55 Neutral	HK$1.95B	-15.63	―	―	10.29%	47.66%
1370	51 Neutral	HK$490.60M	-1.44	-41.19%	―	-6.51%	41.00%
1091	44 Neutral	HK$2.25B	-3.90	-14.35%	―	-31.35%	-71.37%
0433	41 Neutral	HK$1.14B	-3.58	-4702.63%	―	0.41%	83.35%
0159	41 Neutral	HK$825.94M	-24.05	-7.49%	―	―	-164.29%

North Mining Shares Co., Ltd. Corporate Events

North Mining Shares Delays Circular on Very Substantial Disposal

North Mining Shares Company Limited has announced a delay in sending to shareholders a circular related to a very substantial disposal of assets. The circular, which will contain detailed information on the proposed disposal, financial data for both the disposal group and the remaining group, and notice of a special general meeting, was originally scheduled for dispatch by 12 January 2026 but is now expected to be sent on or before 25 February 2026 due to additional time needed to prepare and finalize the required information, potentially extending the timeline for shareholder review and decision-making on the transaction.

The most recent analyst rating on (HK:0433) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on North Mining Shares Co., Ltd. stock, see the HK:0433 Stock Forecast page.

North Mining Moves to Resolve Going-Concern Disclaimer With Strong Mining Revenue and Major Disposal

North Mining Shares Company Limited has provided an update on measures taken to address a disclaimer of opinion in its 2024 annual report, where auditors raised concerns over the group’s ability to continue as a going concern. From 1 January to 30 November 2025, the company’s mining operations generated unaudited revenue of over HK$800 million, which management attributes to improved operational efficiency, stable commodity prices and higher production, and part of this revenue has been used to repay short-term debts to improve financial stability. In parallel, the company is progressing with a very substantial disposal of its chemical trading and aluminum metal trading businesses to an independent third party; upon completion, the remaining group is expected to shift from a net liability of about HK$479 million to a net asset position of roughly HK$322 million, bolstering its financial footing and enabling greater focus on its core mining business and potential future fundraising.

The most recent analyst rating on (HK:0433) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on North Mining Shares Co., Ltd. stock, see the HK:0433 Stock Forecast page.

North Mining Shares Co., Ltd. Announces Major Disposal of Subsidiary

North Mining Shares Co., Ltd. has entered into a Sale and Purchase Agreement to dispose of its entire issued share capital of a target company, which will no longer be a subsidiary upon completion. This transaction, classified as a very substantial disposal under Hong Kong’s Listing Rules, requires shareholder approval and may significantly impact the company’s financial statements and market positioning.

The most recent analyst rating on (HK:0433) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on North Mining Shares Co., Ltd. stock, see the HK:0433 Stock Forecast page.