South Manganese Investment Limited (1091) AI Stock Analysis

• Market Cap: HK$2.25B
• Dividend Yield: N/A
• Average Volume (3M): 16.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -31.35%
• EPS Growth: -71.37%
• Country: HK
• Employees: 6,029
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.05
• Shares Outstanding: 4,936,981,000
• 10 Day Avg. Volume: 22,147,815
• 30 Day Avg. Volume: 16,310,730
• PEG Ratio: <0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.26
• 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: 44 Neutral
• Price Target: HK$0.47 ▼(-10.38% Downside)

Overall score is driven primarily by weak financial performance (declining revenue, losses, negative operating/free cash flow, and high leverage). Technical indicators also lean bearish (negative MACD and price below key short-term averages), while valuation is constrained by loss-making results and no indicated dividend support.

Positive Factors

Integrated manganese value chain

Operating across mining, upstream resources, processing and distribution provides structural vertical integration that can capture more margin and offer pricing/volume flexibility versus single-node peers. This long-term business model supports resilience through commodity cycles.

Operational scale

A workforce of over 6,000 implies meaningful operational scale and execution capacity to run mines and processing plants. Scale supports fixed-cost absorption, continuity of operations, and the ability to commercialize product across markets over the medium term.

Equity buffer on balance sheet

While balance-sheet leverage is elevated, the stated reasonable equity ratio provides a durable cushion for creditors and investors, helping preserve funding options and potential access to capital during market stress compared with firms having eroded equity.

Negative Factors

Declining revenue and profitability

A sharp revenue decline and transition to negative net income indicate persistent demand weakness or loss of market share and point to deeper operational or pricing pressures. Over months this undermines reinvestment ability and long-term competitiveness if trends persist.

Negative operating and free cash flow

Sustained negative operating and free cash flow threatens liquidity and constrains capital allocation. Without cash generation, the company faces limited ability to fund capital needs, service debt, or invest in efficiency improvements over the coming 2–6 months.

High leverage and declining equity

Elevated leverage together with falling shareholders' equity increases solvency risk and reduces financial flexibility. In a cyclical commodity sector, this structural weakness raises refinancing and covenant pressures that can impair long-term operational stability.

South Manganese Investment Limited Business Overview & Revenue Model

Company Description

South Manganese Investment Limited (1091) is a company primarily engaged in the mining and production of manganese and related products. Operating in the mining sector, the company focuses on the extraction, processing, and sale of manganese ore, which is a critical raw material used in steel production and various industrial applications. The company aims to capitalize on the growing demand for manganese in both domestic and international markets, leveraging its operational efficiency and strategic location.

How the Company Makes Money

South Manganese Investment Limited generates revenue primarily through the sale of manganese ore and its derivatives. The company's revenue model is built around the extraction of manganese from its mining operations, which is then processed and sold to steel manufacturers and other industrial clients. Key revenue streams include direct sales contracts with large steel producers, as well as spot market sales. Additionally, the company may benefit from strategic partnerships with industry players, enhancing its distribution capabilities and market reach. Other contributing factors to its earnings may include fluctuations in global manganese prices and operational efficiencies that reduce production costs.

South Manganese Investment Limited Financial Statement Overview

Summary

Weak fundamentals: revenue fell sharply in 2024, profitability deteriorated with net income turning negative and negative EBIT, and cash generation is poor with negative operating and free cash flow. Leverage is elevated (high debt-to-equity) and equity has been declining, increasing financial risk.

Income Statement

The company has shown volatile revenue trends with a significant decline in 2024, indicating challenges in maintaining consistent growth. Gross profit margin and other profitability metrics are under pressure, with net income turning negative in the latest year, reflecting operational inefficiencies and potential market downturns. The negative EBIT and declining EBITDA margins further highlight these operational challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage which could pose risks in a volatile market. However, the company maintains a reasonable equity ratio, suggesting some level of stability. Declining stockholders' equity and high total debt are matters of concern, potentially impacting long-term financial health.

Cash Flow

Cash flow metrics reflect concerning trends, with negative operating and free cash flows in the latest year, suggesting liquidity challenges. The inability to generate positive free cash flow despite significant capital expenditures raises concerns over financial flexibility and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.39B	13.21B	17.13B	16.03B	12.83B	4.37B
Gross Profit	677.41M	406.37M	934.15M	1.37B	2.34B	576.50M
EBITDA	546.38M	137.07M	808.66M	1.06B	1.63B	300.64M
Net Income	-389.59M	-725.07M	64.14M	336.09M	454.58M	-437.93M
Balance Sheet
Total Assets	8.45B	8.79B	11.37B	11.45B	10.98B	9.06B
Cash, Cash Equivalents and Short-Term Investments	724.70M	402.33M	1.15B	1.26B	1.12B	1.18B
Total Debt	3.59B	3.95B	5.12B	4.46B	4.11B	4.57B
Total Liabilities	6.12B	6.81B	8.54B	8.62B	7.94B	6.51B
Stockholders Equity	2.71B	2.36B	3.14B	3.17B	3.11B	2.52B
Cash Flow
Free Cash Flow	797.75M	1.01B	-860.95M	-111.77M	888.67M	123.61M
Operating Cash Flow	1.33B	1.60B	-319.82M	935.91M	1.60B	596.78M
Investing Cash Flow	-380.20M	-868.55M	-498.82M	-921.12M	-775.17M	-540.39M
Financing Cash Flow	-1.28B	-1.29B	655.09M	239.90M	-951.00M	-65.41M

South Manganese Investment Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1091, the sentiment is Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.50, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 24.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1091.

South Manganese Investment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2245	76 Outperform	HK$39.21B	13.91	24.57%	1.89%	60.77%	100.45%
3939	70 Outperform	HK$55.10B	54.44	36.46%	1.32%	31.24%	58.16%
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	44 Neutral	HK$2.25B	-3.90	-14.35%	―	-31.35%	-71.37%
0159	41 Neutral	HK$825.94M	-24.05	-7.49%	―	―	-164.29%
0433	41 Neutral	HK$1.14B	-3.58	-4702.63%	―	0.41%	83.35%

South Manganese Investment Limited Corporate Events

South Manganese Investor Exits With Sale of 10.83% Stake

South Manganese Investment Limited has disclosed that substantial shareholder Mr. Cheung Ming has sold his entire stake of 534,691,800 shares, representing about 10.83% of the company’s issued share capital, at an average price of HK$0.24 per share, and as a result no longer holds any shares in the company. The board stated that this disposal is not expected to have a material impact on the group’s business operations or financial position, suggesting that while the move significantly alters the shareholder structure, it should not affect day-to-day activities or the company’s immediate financial health.

The most recent analyst rating on (HK:1091) stock is a Sell with a HK$0.34 price target. To see the full list of analyst forecasts on South Manganese Investment Limited stock, see the HK:1091 Stock Forecast page.

South Manganese Flags Deepening Losses at Zunyi Subsidiary

The company warned that subsidiary Zunyi Company will post FY2025 losses of roughly HK$105 million–HK$110 million before intercompany eliminations, translating to about HK$50 million–HK$55 million attributable to the parent, as weak regional demand and elevated labor costs erode profitability. Management is still compiling group-wide accounts, so the full impact on consolidated results remains uncertain, prompting a cautionary stance for shareholders and potential investors.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.58 price target. To see the full list of analyst forecasts on South Manganese Investment Limited stock, see the HK:1091 Stock Forecast page.

South Manganese Flags Rising Costs, Mine Suspension and Losses at Key Units

South Manganese Investment Limited has responded to recent online reports about its operating conditions by highlighting rising costs for key raw materials used in its electrolytic manganese products and confirming that it has been reviewing and adjusting its cost structure to control and reduce production expenses. The company also disclosed that the mining right for its wholly owned Tiandeng manganese mine branch expired in December 2024 and remains under application, forcing a partial suspension of mining activities and leading to significant losses, while weak demand and high labour costs have pushed its non-wholly owned Zunyi ferroalloy subsidiary into substantial losses as well; the board is assessing remedies for these challenges and has urged shareholders and potential investors to exercise caution when trading its shares.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.59 price target. To see the full list of analyst forecasts on South Manganese Investment Limited stock, see the HK:1091 Stock Forecast page.