Mongolian Mining (0975) AI Stock Analysis

• Market Cap: HK$14.23B
• Dividend Yield: N/A
• Average Volume (3M): 5.83M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.55
• Revenue Growth: -20.50%
• EPS Growth: -64.45%
• Country: HK
• Employees: 2,559
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.17
• Shares Outstanding: 1,036,847,800
• 10 Day Avg. Volume: 4,998,832
• 30 Day Avg. Volume: 5,828,077
• PEG Ratio: 0.83
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 27.84
• 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: 73 Outperform
• Price Target: HK$14.00 ▲(26.13% Upside)

The score is primarily driven by strong financial performance (profitability and improving leverage), supported by a clear technical uptrend. Offsetting factors are overbought technical readings and a valuation that is not clearly cheap (P/E ~20.9) with no dividend yield data to support the valuation case.

Positive Factors

High profitability margins

Sustained high gross and net margins indicate strong pricing power and product quality in coking coal, enabling durable cash generation and profitability. These margins support reinvestment and debt reduction, underpinning long-term operational resilience in steel-supply markets.

Improved leverage and solid equity base

Marked reduction in leverage and a strong equity ratio materially lowers financial risk and increases flexibility for capex or navigating downturns. Improved balance sheet provides resilience to commodity cycles and capacity to pursue strategic investments without excessive refinancing strain.

Strategic position in coking coal market

Long-term contracts with major steel buyers and a focus on high-quality coking coal create stable structural demand. Being essential to steel production reduces revenue volatility versus non-specialized coal, supporting predictable volumes and stronger customer relationships over multiple quarters.

Negative Factors

Missing 2024 operating cash flow data

Lack of reported 2024 operating cash flow introduces material visibility risk into cash-generation assessment. Without current OCF trends, it's difficult to judge the sustainability of free cash flow, dividend capacity, or ability to service debt through the next business cycle.

Recent declines in revenue and EPS growth

Steep recent falls in revenue and EPS point to earnings volatility and potential demand or pricing pressure. Such sharp shifts can erode margins and weaken investment plans, making profitability and cash forecasts less reliable across the next several quarters.

Exposure to coal price and regulatory shifts

Dependence on coking coal revenues ties profitability to commodity cycles and policy shifts. Regulatory tightening or weaker steel demand can structurally compress margins and volumes, challenging long-term planning and requiring active risk management to preserve returns.

Mongolian Mining Business Overview & Revenue Model

Company Description

Mongolian Mining Corporation engages in the mining, processing, transportation, and sale of coking coal products in China. The company owns and operates the Ukhaa Khudag and the Baruun Naran open-pit coking coal mines located in South Gobi province of Mongolia. It is also involved in the railway project management, airport operation and management, water exploration and supply management, and power supply project management activities; and trading of coal and machinery equipment. The company was incorporated in 2010 and is headquartered in Ulaanbaatar, Mongolia.

How the Company Makes Money

Mongolian Mining generates its revenue primarily through the sale of coking coal to domestic and international markets. The company benefits from long-term contracts with major steel producers in Asia, which provide a steady demand for its coal products. Additionally, it capitalizes on favorable pricing in the global coal market, particularly during periods of high demand for steel. Key revenue streams include direct sales, transportation services for coal delivery, and potential partnerships with other mining and industrial companies that enhance its market reach. The company's earnings are also influenced by factors such as coal prices, regulatory changes, and global economic conditions.

Mongolian Mining Financial Statement Overview

Summary

Strong income statement trends with rapid revenue growth and healthy profitability (2023 gross margin 39.6%, net margin 23.3%). Balance sheet is solid with improving leverage (debt-to-equity down to 0.19 in 2023) and strong ROE (19.8%). Score is tempered by cash-flow visibility risk due to missing recent operating cash flow data and noted gross profit softening into 2024.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	845.37M	1.04B	1.03B	546.25M	184.07M	417.42M
Gross Profit	250.71M	411.68M	441.64M	95.12M	22.58M	128.58M
EBITDA	283.32M	460.05M	465.04M	163.44M	35.92M	147.59M
Net Income	85.69M	242.01M	239.69M	59.18M	-55.44M	28.94M
Balance Sheet
Total Assets	2.31B	2.14B	2.01B	1.82B	1.88B	1.74B
Cash, Cash Equivalents and Short-Term Investments	219.71M	140.52M	175.80M	64.69M	25.94M	38.90M
Total Debt	393.80M	236.69M	213.99M	373.81M	452.67M	449.69M
Total Liabilities	939.79M	754.29M	838.58M	893.43M	982.56M	847.38M
Stockholders Equity	1.21B	1.25B	1.17B	928.03M	896.39M	887.78M
Cash Flow
Free Cash Flow	-42.03M	34.54M	348.07M	152.69M	34.45M	40.27M
Operating Cash Flow	157.13M	223.49M	481.88M	233.78M	84.91M	108.69M
Investing Cash Flow	-201.82M	-177.91M	-172.30M	-87.92M	-56.76M	-70.79M
Financing Cash Flow	-16.95M	-80.43M	-197.58M	-103.87M	-41.66M	-41.65M

Mongolian Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.10
• 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 11.1 is below the 20-day moving average (MA) of 12.10, below the 50-day MA of 11.17, and above the 200-day MA of 9.25, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 71.75 is Negative, neither overbought nor oversold. The STOCH value of 77.44 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$14.75B	8.65	19.63%	9.92%	-2.79%	-39.45%
0639	79 Outperform	HK$16.80B	15.51	6.64%	9.28%	-5.78%	-29.52%
1733	73 Outperform	HK$2.38B	8.64	3.21%	20.68%	-23.72%	-86.69%
0975	73 Outperform	HK$14.23B	22.50	6.76%	―	-20.50%	-64.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2798	60 Neutral	HK$1.86B	9.22	6.31%	4.24%	-26.28%	-69.55%
0866	47 Neutral	HK$10.63B	29.10	81.71%	1.53%	-20.71%	209.68%

Mongolian Mining Corporate Events

Mongolian Mining lifts coking coal sales and advances gold-copper projects in 2025

Mongolian Mining Corporation reported a robust operational performance for the quarter and year ended 31 December 2025, led by its core coking coal business. Washed coking coal sales reached 2.58 million tonnes in the fourth quarter, up 12% quarter-on-quarter and 37% year-on-year, while annual washed coking coal sales rose 4% to 8.22 million tonnes, with a largely stable product mix dominated by hard coking coal. Run-of-mine output, processing volumes and washed coal production all increased compared with both the prior quarter and the same period a year earlier, underscoring stronger utilisation of its Ukhaa Khudag and Baruun Naran mines and reinforcing the company’s position as Mongolia’s leading producer and exporter of washed coking coal. In its gold and metals segment, the company’s 50%-owned Bayan Khundii mine ramped up sales, delivering 7,434 ounces of gold and 2,634 ounces of silver to the Bank of Mongolia and commercial banks at attractive average prices, while technical drilling, sampling and feasibility work advanced at the White Hill copper-silver-gold project. These developments indicate growing diversification beyond coal and a deepening pipeline of precious and base metals assets that could broaden revenue sources and support longer-term growth for stakeholders.

The most recent analyst rating on (HK:0975) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on Mongolian Mining stock, see the HK:0975 Stock Forecast page.

Mongolian Mining Explains Higher Service Caps and Tightens Oversight on Connected Transactions

Mongolian Mining Corporation has issued a supplemental announcement detailing how it set higher proposed annual caps under its service agreement for office and camp support services provided by Energy Resources and USS. The company attributes the substantial increase mainly to a roughly 29% rise in per man‑day rates for catering, camp and accommodation services, including enhanced meal options for employee well‑being and cost inflation over the past three years, as well as a 46% increase in employee numbers that will drive greater use of these services. The miner also clarified its internal control and procurement procedures for continuing connected transactions, noting that while it aims to obtain at least three quotations for pricing comparisons, this requirement may not always be achievable in tender processes due to market constraints, as shown by a recent tender in which only two bidders participated; the board emphasizes that oversight mechanisms remain in place to ensure terms are fair, on normal commercial terms, and in the interests of shareholders.

The most recent analyst rating on (HK:0975) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Mongolian Mining stock, see the HK:0975 Stock Forecast page.

Mongolian Mining Sets 2026 Board Line-Up and Committee Structure

Mongolian Mining Corporation has announced that, effective 1 January 2026, its board will consist of seven directors: two executive directors, including Chairman Odjargal Jambaljamts and Group CEO Battsengel Gotov, two non-executive directors and three independent non-executive directors. The company has also detailed the composition of its four key board committees—Audit, Environmental, Social and Governance (ESG), Nomination and Remuneration—clarifying chairmanships and memberships, a move that reinforces its corporate governance structure and delineates oversight responsibilities across financial reporting, sustainability, board appointments and executive pay.

The most recent analyst rating on (HK:0975) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Mongolian Mining stock, see the HK:0975 Stock Forecast page.

Mongolian Mining Revamps Board and ESG Committee with New Non-Executive Director

Mongolian Mining Corporation has announced board and committee changes effective 1 January 2026, with non-executive director Myagmarjav Ganbyamba stepping down to focus on personal commitments. The company has appointed finance veteran Ariunbayar Byambadorj, currently Deputy Director of MCS Investment and formerly the group’s executive general manager of financial planning, as a non-executive director and member of the Environmental, Social and Governance Committee, reinforcing the board’s financial expertise and continuity in overseeing the miner’s ESG agenda.

The most recent analyst rating on (HK:0975) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Mongolian Mining stock, see the HK:0975 Stock Forecast page.

Mongolian Mining Signs Three-Year, US$40.8 Million Support Services Deal With Connected Party USS

Mongolian Mining Corporation’s subsidiary Energy Resources has signed a new service agreement with USS to provide catering, camp and accommodation management, cleaning, maintenance and related support services for the group’s Ulaanbaatar office and its camps and operational sites from 1 January 2026 to 31 December 2028, for a maximum total consideration of about MNT145 billion (around USD40.8 million). Because USS is a connected person through the company’s substantial shareholder, the contract constitutes a continuing connected transaction under Hong Kong listing rules, triggering reporting, announcement and annual review requirements but exempting it from independent shareholders’ approval, and the company notes the consideration was set via competitive tender and arm’s length negotiations, with historical spending under the prior agreement providing a benchmark for the new annual caps.

The most recent analyst rating on (HK:0975) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Mongolian Mining stock, see the HK:0975 Stock Forecast page.