Mongolian Mining (0975) AI Stock Analysis

• Market Cap: HK$8.97B
• Dividend Yield: N/A
• Average Volume (3M): 8.65M
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.05
• Revenue Growth: 0.16%
• EPS Growth: -4.09%
• Country: HK
• Employees: 2,559
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Coal
• EPS (TTM): 0.78
• Shares Outstanding: 1,036,300,300
• 10 Day Avg. Volume: 18,997,667
• 30 Day Avg. Volume: 8,646,109
• PEG Ratio: -0.02
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.79
• Enterprise Value/Market Cap: 0.06
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 0.32
• 1Y Price Target: HK$6.52
• Price Target Upside: -21.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: HK$9.50 ▲(14.87%Upside)

Mongolian Mining's strong valuation and technical indicators contribute significantly to the overall score. The company's robust financial performance, despite some concerns about cash flow visibility, underpins its strength. The absence of earnings call and corporate events data limits the analysis, but current data supports a positive outlook.

Mongolian Mining Business Overview & Revenue Model

Company Description

Mongolian Mining Corporation (0975) is a leading producer and exporter of high-quality coking coal in Mongolia. The company focuses on the mining, processing, and sale of coal products, primarily used in steel production. With significant operations based in the South Gobi region, Mongolian Mining Corporation leverages its strategic location near major transportation routes to supply its products to key markets in China and beyond.

How the Company Makes Money

Mongolian Mining Corporation generates revenue primarily through the extraction and sale of coking coal, which is a critical component in steel manufacturing. The company's revenue model is predominantly centered on mining operations and the subsequent sale of coal to steel producers. Key revenue streams include direct sales to end-users in China, which is the largest consumer of coking coal globally. The company benefits from its strategic partnerships with logistics and transportation companies, which facilitate efficient coal delivery to its customers. Additionally, the company's earnings are influenced by global coal price trends, production volumes, and operational efficiencies at its mining sites.

Mongolian Mining Financial Statement Overview

Summary

Mongolian Mining has shown strong revenue growth and profitability, with significant improvements in its income statement and balance sheet. However, the absence of current cash flow data presents a risk to liquidity assessment.

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
EBITDA	460.05M	465.04M	163.44M	35.92M	147.59M
Net Income	242.01M	239.69M	59.18M	-55.44M	28.94M
Balance Sheet
Total Assets	2.14B	2.01B	1.82B	1.88B	1.74B
Cash, Cash Equivalents and Short-Term Investments	140.52M	175.80M	64.69M	25.94M	38.90M
Total Debt	236.69M	213.99M	373.81M	452.67M	449.69M
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: Positive
• Last Price: 8.27
• 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:0975, the sentiment is Positive. The current price of 8.27 is above the 20-day moving average (MA) of 7.20, above the 50-day MA of 6.59, and above the 200-day MA of 7.05, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 76.57 is Negative, neither overbought nor oversold. The STOCH value of 58.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0975.

Mongolian Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1277	81 Outperform	HK$11.55B	4.97	27.12%	11.59%	17.89%	0.63%
0975	79 Outperform	HK$8.97B	5.02	19.62%	―	0.16%	-4.09%
2798	72 Outperform	HK$1.49B	2.92	14.62%	5.75%	-1.93%	-13.59%
0639	70 Outperform	HK$14.71B	9.40	9.12%	10.37%	-14.16%	-19.38%
1733	69 Neutral	HK$2.99B	3.12	10.58%	17.05%	-3.50%	-56.52%
0866	61 Neutral	HK$4.49B	8.11	87.02%	1.44%	-26.23%	147.99%
Sector *	59 Neutral	HK$17.74B	4.73	-5.52%	3.33%	-3.57%	-61.41%

Mongolian Mining Corporate Events

Mongolian Mining Corporation Reports Q2 2025 Operational Update and New Gold Mine Commissioning

Mongolian Mining Corporation reported a decrease in run-of-mine coal output for the second quarter of 2025, with a 7% drop quarter-on-quarter and a 28% decline year-on-year. Despite this, the company saw a 3% increase in washed coking coal production compared to the previous quarter. The company also announced the commissioning of the Bayan Khundii gold mine processing plant, with commercial production expected to start in the third quarter of 2025. These developments indicate a strategic focus on diversifying operations and enhancing production capabilities, which could impact the company’s market positioning and stakeholder interests.

Mongolian Mining Corporation Updates Nomination Committee Terms

Mongolian Mining Corporation has updated the terms of reference for its Nomination Committee, effective from June 19, 2025. The committee, consisting of at least three members with a majority being independent non-executive directors, aims to ensure a formal and transparent procedure for appointing new directors, reflecting diversity in gender, age, and other factors. This update aligns with the company’s strategic goals and compliance with Hong Kong’s listing rules, potentially enhancing governance and stakeholder confidence.

Mongolian Mining Corporation Announces Board Composition

Mongolian Mining Corporation has announced the composition of its board of directors, which includes a mix of executive, non-executive, and independent non-executive directors. The board consists of ten members, with various individuals serving on key committees such as the Audit Committee, Environmental, Social and Governance Committee, Nomination Committee, and Remuneration Committee. This announcement highlights the company’s governance structure and the roles of its directors, which is crucial for stakeholders in assessing the company’s management and strategic direction.

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.