Mongolian Mining (0975) AI Stock Analysis

• Market Cap: HK$6.40B
• Dividend Yield: N/A
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.12
• Revenue Growth: 0.16%
• EPS Growth: -4.09%
• Country: HK
• Employees: 2,559
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Coal
• EPS (TTM): 0.78
• Shares Outstanding: 1,033,791,700
• 10 Day Avg. Volume: 4,055,663
• 30 Day Avg. Volume: 2,935,520
• PEG Ratio: 0.70
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.98
• 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: 72 Outperform
• Price Target: HK$7.50 ▲(18.11%Upside)

Mongolian Mining's robust financial performance, particularly in revenue growth and efficient debt management, drives the stock's score. Positive technical indicators and a low P/E ratio further support the stock's potential. However, the lack of recent cash flow data and trading below the 200-day moving average are risks to consider.

Mongolian Mining Business Overview & Revenue Model

Company Description

Mongolian Mining Corporation (0975) is a leading producer and exporter of high-quality coking coal, primarily operating in Mongolia. It focuses on the mining, processing, and sale of coking coal products, which are essential for steel manufacturing. The company operates major mines in the South Gobi region and serves key markets in China and other Asian countries.

How the Company Makes Money

Mongolian Mining Corporation generates revenue primarily through the extraction and sale of coking coal. The company operates several open-pit mining sites where it extracts raw coal, which is then processed to produce high-quality coking coal suitable for steel production. The processed coal is transported and sold to customers, primarily in China, which is one of the world's largest consumers of coal. The company's revenue streams are heavily dependent on coal production volumes, global coal prices, and transportation logistics. Additionally, partnerships with logistics companies and favorable trade agreements can significantly impact its profitability by reducing transportation costs and improving market access.

Mongolian Mining Financial Statement Overview

Summary

Mongolian Mining presents a robust financial profile with strong revenue growth and profitability metrics. The balance sheet is solid with a healthy equity ratio and manageable debt levels. However, the absence of recent cash flow data presents a potential risk. Overall, the company is financially strong but needs to ensure continued cash flow visibility.

Income Statement

Mongolian Mining has demonstrated strong revenue growth over recent years, moving from $184 million in 2021 to over $1 billion in 2023. The company maintains healthy gross and net profit margins, with a gross profit margin of 39.6% and a net profit margin of 23.3% in 2023. The EBIT and EBITDA margins are also robust, reflecting operational efficiency. However, the slight decline in gross profit from 2023 to 2024 suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity base, with an equity ratio of approximately 58.3% in 2023, indicating financial stability. The debt-to-equity ratio has improved from 0.39 in 2022 to 0.19 in 2023, showcasing effective debt management. Return on Equity (ROE) is also strong at 19.8%, reflecting efficient use of equity. Despite these strengths, the company should monitor its liabilities to maintain balance sheet strength.

Cash Flow

While Mongolian Mining has been generating positive free cash flow, there are concerns regarding the absence of operating cash flow data for 2024, which limits analysis. Historically, the company has shown strong free cash flow generation, especially in 2023 with $348 million. However, the lack of recent data raises questions about current liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04B	1.03B	546.25M	184.07M	417.42M
	Gross Profit
411.68M	441.64M	95.12M	22.58M	128.58M
	EBIT
368.32M	387.00M	98.57M	-13.18M	81.42M
	EBITDA
460.05M	465.04M	163.44M	35.92M	147.59M
	Net Income Common Stockholders
242.01M	239.69M	59.18M	-55.44M	28.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.52M	175.80M	64.69M	25.94M	38.90M
	Total Assets
2.14B	2.01B	1.82B	1.88B	1.74B
	Total Debt
236.69M	213.99M	373.81M	452.67M	449.69M
	Net Debt
96.17M	38.19M	309.12M	426.74M	410.79M
	Total Liabilities
754.29M	838.58M	893.43M	982.56M	847.38M
	Stockholders Equity
1.25B	1.17B	928.03M	896.39M	887.78M
Cash Flow		Free Cash Flow
34.54M	348.07M	152.69M	34.45M	40.27M
	Operating Cash Flow
223.49M	481.88M	233.78M	84.91M	108.69M
	Investing Cash Flow
-177.91M	-172.30M	-87.92M	-56.76M	-70.79M
	Financing Cash Flow
-80.43M	-197.58M	-103.87M	-41.66M	-41.65M

Mongolian Mining Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0975, the sentiment is Neutral. The current price of 6.35 is above the 20-day moving average (MA) of 6.10, above the 50-day MA of 5.94, and below the 200-day MA of 7.17, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0975.

Mongolian Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2798	75 Outperform	€1.23B	2.48	14.62%	7.21%	-1.93%	-13.59%
0975	72 Outperform	HK$6.40B	3.68	19.62%	―	0.16%	-4.09%
1277	70 Outperform	HK$9.61B	4.16	27.12%	7.46%	17.89%	0.63%
0639	70 Outperform	HK$13.59B	8.81	9.12%	10.09%	-14.16%	-19.38%
1733	66 Neutral	HK$2.00B	2.23	10.58%	29.92%	-3.50%	-56.52%
0866	52 Neutral	HK$3.17B	5.69	87.02%	―	-26.23%	147.88%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%

Mongolian Mining Corporate Events

Mongolian Mining Corporation Announces Early Termination of Security Services Agreement

Mongolian Mining Corporation announced the early termination of its Security Services Agreement with M-Armor due to internal reasons cited by M-Armor. To ensure continuity of services, the company has entered into a new agreement with an independent third-party provider effective June 2025. The board has reviewed and approved the terms of the new agreement, finding them reasonable and favorable, ensuring no disruption to the company’s operations. The termination does not affect any prior rights or liabilities, and there have been no breaches or disputes under the original agreement.

Mongolian Mining Corporation Successfully Passes AGM Resolutions

Mongolian Mining Corporation announced that all resolutions proposed at its Annual General Meeting on May 26, 2025, were successfully passed by shareholders through a poll. Key resolutions included the adoption of financial statements, re-election of directors, and granting mandates for share issuance and repurchase, reflecting strong shareholder support and strategic continuity for the company.

Mongolian Mining Corporation Enhances Power Supply Agreement

Mongolian Mining Corporation has announced amendments to its EM Power Purchase Agreement with MCS International, aimed at improving power supply reliability and extending the lifespan of its power systems for the Bayan Khundii project. The agreement now includes additional operation and maintenance services, reducing dependency on diesel and aligning with other existing agreements. These changes are expected to benefit the company in the near- and long-term by stabilizing power costs and enhancing operational efficiency.

Mongolian Mining Corporation Announces 2025 AGM Agenda

Mongolian Mining Corporation has announced its upcoming annual general meeting scheduled for May 26, 2025, in Hong Kong. Key agenda items include the adoption of financial statements, re-election of directors, and the re-appointment of KPMG as auditors. The meeting will also consider granting a mandate to the directors to issue additional shares, which could impact the company’s capital structure and shareholder value.

Mongolian Mining Completes Redemption of Senior Notes Due 2026

Mongolian Mining Corporation has successfully completed the redemption of its senior notes due in 2026, as announced earlier. The redemption was executed at a price of 109.27% of the principal amount, and the company states that this will not materially impact its financial position. Following the redemption, the notes will be canceled and delisted from the Singapore Exchange Securities Trading Limited.

Mongolian Mining Corporation Reports Q1 2025 Operational Update

Mongolian Mining Corporation reported a 3% year-on-year increase in run-of-mine coal output for the first quarter of 2025, while sales of washed coking coal products decreased by 3% compared to the same period in 2024. The company is advancing the construction of the Bayan Khundii gold mine, with production expected in the second half of 2025, and has acquired a majority stake in Universal Copper LLC to expand its operations in copper and non-ferrous metals.

Mongolian Mining Corporation Announces Early Redemption of 2026 Senior Notes

Mongolian Mining Corporation announced the early redemption of its 12.50% guaranteed senior notes due 2026. The company plans to redeem all outstanding notes in full by April 15, 2025, using internal resources, which will result in the cancellation of the redeemed notes. This move is likely to impact the company’s financial strategy and stakeholder interests by reducing its debt obligations.

Mongolian Mining Corporation Issues US$350 Million in Senior Notes

Mongolian Mining Corporation has announced the pricing of US$350 million in 8.44% guaranteed senior notes due in 2030. The proceeds from this issuance will be used to repurchase or redeem existing 2026 notes and for general corporate purposes. The notes will be listed on the Singapore Exchange Securities Trading Limited, although they will not be offered to the public in Hong Kong or the United States. This strategic financial move is expected to impact the company’s capital structure and liquidity, potentially enhancing its market position and operational flexibility.

Mongolian Mining Corporation Reports 2024 Financial Results with Strategic Subsidiary Changes

Mongolian Mining Corporation reported a slight increase in revenue to USD 1,039.9 million for the year ended December 31, 2024, compared to the previous year. Despite a decrease in adjusted EBITDA, the company’s profit attributable to shareholders rose marginally to USD 242.0 million. The company completed the acquisition of a 50% equity interest in Erdene Mongol LLC, making it a subsidiary, and disposed of a 20% equity interest in Khangad Exploration LLC, which remains a subsidiary. The board did not recommend a dividend payment for the year.

Mongolian Mining Corporation Schedules Board Meeting for Year-End Results

Mongolian Mining Corporation has announced a board meeting scheduled for March 24, 2025, to review and approve the company’s final results for the year ending December 31, 2024. This meeting will also consider the recommendation of a final dividend and address any other business matters, potentially impacting the company’s financial strategies and shareholder returns.