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

• Market Cap: HK$400.37M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -27.61%
• EPS Growth: 84.83%
• Country: HK
• Employees: 678
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 12,511,641,000
• 10 Day Avg. Volume: 1,700,967
• 30 Day Avg. Volume: 1,521,243
• PEG Ratio: -0.02
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.40
• 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

• Rating: 40 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The most significant factor affecting the overall stock score is the poor financial performance, highlighted by persistent net losses and negative equity, which pose substantial risks. Technical analysis indicates weak momentum, offering little short-term upside potential. Valuation is also a concern, with a negative P/E ratio underscoring the financial challenges faced by the company.

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 rare earth minerals. These minerals are sold to various industries, including electronics, renewable energy, and automotive sectors, which utilize rare earth elements in the production of products such as smartphones, electric vehicles, and wind turbines. The company's revenue streams are largely dependent on the market demand and price fluctuations of these minerals. Additionally, North Mining Shares may engage in strategic partnerships and joint ventures to enhance its mining capabilities and expand its market reach, contributing to its overall earnings.

North Mining Shares Co., Ltd. Financial Statement Overview

Summary

North Mining Shares Co., Ltd. presents a challenging financial picture with consistent operational and financial difficulties. Persistent net losses, negative equity, and high leverage pose significant risks to the company's financial health. Despite some improvements in gross profit margins, the overall trajectory is concerning, with 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.53B	1.30B	1.35B	650.91M
Gross Profit	127.69M	92.41M	80.29M	145.94M	70.19M
EBITDA	-187.20M	-1.56B	-38.09M	-97.17M	-3.12B
Net Income	-68.49M	-1.63B	-162.64M	-361.07M	-2.60B
Balance Sheet
Total Assets	1.54B	1.76B	2.02B	2.12B	2.05B
Cash, Cash Equivalents and Short-Term Investments	15.25M	5.94M	11.34M	20.73M	15.76M
Total Debt	433.65M	704.37M	1.75B	1.80B	1.80B
Total Liabilities	2.11B	2.10B	3.52B	3.39B	2.87B
Stockholders Equity	43.29M	-39.97M	-1.33B	-1.14B	-800.35M
Cash Flow
Free Cash Flow	73.59M	-39.05M	-7.18M	155.87M	-61.96M
Operating Cash Flow	201.08M	-35.64M	81.84M	233.58M	46.77M
Investing Cash Flow	-127.69M	-6.46M	-89.09M	-77.71M	-107.40M
Financing Cash Flow	-63.25M	35.83M	6.76M	-155.04M	62.19M

North Mining Shares Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0433, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of -5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	43 Neutral	AU$1.39B	-6.14	-40.74%	4.06%	-3.45%	-41.77%
0433	40 Neutral	HK$400.37M	―	-9999.00%	―	-27.61%	84.83%
CREQF		$248.83M	―	-5.26%	―	―	―
AIHA			―		―	―	―
WA2		€97.21M	―	-4.73%	―	―	―
00D0		€122.74M	―	-26.13%	―	―	―
1370	45 Neutral	HK$405.56M	―	-35.00%	―	-5.27%	47.34%

North Mining Shares Co., Ltd. Corporate Events

North Mining Shares Co., Ltd. Takes Steps to Address Financial Concerns

North Mining Shares Co., Ltd. has taken significant steps to address a disclaimer of opinion regarding its ability to continue as a going concern, as noted in its 2024 annual report. The company has resumed its mining operations, generating substantial revenue, which is being used to reduce debt and improve financial stability. Additionally, the company is negotiating with potential investors for equity financing and has implemented cost reduction measures to enhance operational efficiency.

North Mining Shares Faces Legal Challenge Over Debt Settlement

North Mining Shares Company Limited, along with its subsidiaries, is involved in a legal dispute concerning a civil judgment issued by the Shanghai Financial Court. The judgment orders Tongxin, a non-wholly owned subsidiary, to settle a debt of RMB294 million plus interest. The company is contesting the judgment and states that the litigation has not adversely affected its operations or financial stability. Stakeholders are advised to exercise caution when dealing with the company’s securities.

North Mining Shares Co., Ltd. Announces Unanimous Approval of AGM Resolutions

North Mining Shares Company Limited held its Annual General Meeting (AGM) on May 23, 2025, where all proposed ordinary resolutions were passed unanimously by shareholders through a poll. The resolutions included re-electing executive directors, authorizing the board to fix directors’ remuneration, re-appointing auditors, and granting mandates to issue and repurchase shares. The successful passage of these resolutions indicates strong shareholder support and positions the company for continued stability and strategic flexibility in its operations.

North Mining Shares Co., Ltd. Announces AGM and Key Resolutions

North Mining Shares Co., Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, in Hong Kong. The AGM will address several key issues, including the consideration of the audited financial statements for the year ended December 31, 2024, re-election of directors, and reappointment of auditors. Additionally, the company seeks shareholder approval for resolutions that would allow the directors to issue new shares and repurchase existing shares, potentially impacting the company’s capital structure and shareholder value.