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

• Market Cap: HK$1.20B
• Dividend Yield: N/A
• Average Volume (3M): 10.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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$0.06 ▼(-23.75% 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

Revenue Growth

Despite volatility, the company has shown the ability to grow revenue, indicating potential for capturing market opportunities in mineral resources.

Gross Profit Margin Improvement

Improvement in gross profit margins suggests better cost management and operational efficiency, which can enhance profitability over time.

Industry Demand

The company's focus on mineral resources positions it well to benefit from long-term industry demand, supporting revenue growth and market expansion.

Negative Factors

Negative Equity

Negative equity indicates financial instability, posing risks to long-term viability and limiting the company's ability to raise capital.

Persistent Net Losses

Ongoing net losses highlight operational inefficiencies and challenge the company's ability to achieve sustainable profitability.

Cash Flow Challenges

Inability to generate positive cash flow from operations limits financial flexibility and can hinder investment in growth opportunities.

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. 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	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: Negative
• 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 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.05 is Negative, neither overbought nor oversold. The STOCH value of 70.59 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%
1091	51 Neutral	HK$2.57B	-4.46	-14.35%	―	-31.35%	-71.37%
1370	51 Neutral	HK$580.54M	-1.71	-41.19%	―	-6.51%	41.00%
0433	41 Neutral	HK$1.20B	-3.77	-4702.63%	―	0.41%	83.35%
0159	36 Underperform	HK$835.22M	-24.32	-7.49%	―	―	-164.29%

North Mining Shares Co., Ltd. Corporate Events

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.

North Mining Shares Co., Ltd. Reports Progress on Financial Stability and Operational Viability

North Mining Shares Co., Ltd. has provided an update on measures to address a disclaimer of opinion in its 2024 annual report regarding its ability to continue as a going concern. The company reported significant revenue and profit from its mining operations, indicating operational viability and financial stability. Additionally, the company completed equity financing through new share subscriptions, raising approximately HK$74.7 million to settle debts and support working capital, reflecting its commitment to financial management and shareholder value enhancement.