South Manganese Investment Limited (1091) AI Stock Analysis

• Market Cap: HK$2.25B
• Dividend Yield: N/A
• Average Volume (3M): 19.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• 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: 13,402,405
• 30 Day Avg. Volume: 19,117,209
• 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: 51 Neutral
• Price Target: HK$0.50 ▲(11.11% Upside)

The overall stock score of 51 reflects significant financial challenges, including declining revenues and profitability, high leverage, and negative cash flows. Technical analysis provides some support with mixed signals, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

South Manganese Investment Limited Business Overview & Revenue Model

Company Description

South Manganese Investment Limited, an investment holding company, engages in manganese mining, ore processing, and downstream processing operations in Mainland China, the rest of Asia, Europe, and North America. It operates through four segments: Manganese Mining, EMM and Alloying Materials Production, Battery Materials Production, and Other Business. The Manganese Mining segment mines and produces manganese products, including manganese concentrate, and natural discharging manganese powder and sand. This segment also has interests in the Daxin mine located to the west of Daxin County in Guangxi; the Tiandeng manganese mine located to the north of Tiandeng County in Guangxi; the Waifu manganese mine located in Jingxi, Guangxi; the Changgou manganese mine located in Guizhou; and the Bembélé manganese mine located to the north of Ndjolé town in the Moyen-Ogooue Province of Gabon. The EMM and Alloying Materials segment mines and processes ores used in hydrometallurgical processing activities for the production of electrolytic manganese metal (EMM) and manganese briquette, and pyrometallurgical processing for the production of silicomanganese alloys. The Battery Materials segment manufactures and sells battery materials products, including Electrolytic Manganese Dioxide (EMD), manganese sulfate, lithium manganese oxide, and lithium nickel cobalt manganese oxide. The Other Business segment trades in various commodities, such as manganese ores, EMM, manganese alloys, and non-manganese metals, as well as sells scraps, rents investment properties and leasehold lands, and invests in companies engaged in the mining and production of non-manganese metals. It also manufactures and sells equipment, develops properties, and produces sulphuric acid and steam. The company was formerly known as CITIC Dameng Holdings Limited and changed its name to South Manganese Investment Limited in February 2021. The company was incorporated in 2005 and is headquartered in Admiralty, Hong Kong.

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

South Manganese Investment Limited faces significant financial challenges, with declining revenues, profitability, and cash flows. High leverage and negative cash flows exacerbate financial risks, especially in an uncertain market environment.

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: Positive
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 0.45 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.45, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Outperform	HK$33.36B	11.83	24.57%	1.70%	60.77%	100.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3939	58 Neutral	HK$34.03B	33.62	36.46%	1.39%	31.24%	58.18%
0769	55 Neutral	$1.95B	-15.63	―	―	10.29%	47.66%
0433	53 Neutral	HK$1.08B	―	-4702.63%	―	0.41%	83.35%
1091	51 Neutral	HK$2.25B	―	-14.35%	―	-31.35%	-71.37%
0159	36 Underperform	HK$1.07B	―	-7.49%	―	―	-164.29%

South Manganese Investment Limited Corporate Events

South Manganese Investment Limited Appoints New CEO and Executive Directors

South Manganese Investment Limited has announced the appointment of Mr. Zhan Haiqing as the new executive director and chief executive officer, effective October 13, 2025. Mr. Zhan, who has been with the company since 2005, brings over 34 years of experience in the manganese industry and has been recognized for his contributions to the field. The appointments are expected to strengthen the company’s leadership and support its strategic goals in the manganese market.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.50 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 Investment Limited Announces Board Restructuring

South Manganese Investment Limited, a company incorporated in Bermuda, has announced changes to its board of directors and committee memberships effective from October 13, 2025. The board will consist of executive, non-executive, and independent non-executive directors, with Mr. Zhang He serving as Chairman and Mr. Zhan Haiqing as Chief Executive Officer. The announcement outlines the roles and functions of each director within the company’s audit, remuneration, and nomination committees, indicating a strategic restructuring aimed at enhancing governance and operational oversight.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.50 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 Investment Limited Announces Board Restructuring

South Manganese Investment Limited has announced changes to its board of directors and the composition of its board committees, effective from October 10, 2025. These changes include the appointment of Mr. Zhang He as Chairman and adjustments in the roles of various directors across the Audit, Remuneration, and Nomination Committees, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on South Manganese Investment Limited stock, see the HK:1091 Stock Forecast page.

Leadership Changes at South Manganese Investment Limited

South Manganese Investment Limited has announced significant changes in its board leadership, with Mr. Zhang Yi stepping down as Chairman to focus on other commitments, while Mr. Zhang He will take over the role effective October 10, 2025. These changes are expected to influence the company’s strategic direction and governance, as Mr. Zhang He brings extensive experience in securities markets and company management to his new role.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.50 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 Investment Limited Announces Board Restructuring

South Manganese Investment Limited has announced changes to its board of directors and committee memberships, effective October 10, 2025. The restructuring includes the appointment of Mr. Zhang He as Chairman and adjustments in the roles within the Audit, Remuneration, and Nomination Committees, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.50 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 Reports Profit Amid Revenue Decline

South Manganese Investment Limited reported a significant decrease in revenue for the first half of 2025, down 49.2% compared to the same period in 2024. Despite the drop in revenue, the company achieved a notable increase in gross profit and operating profit, with gross profit margin rising to 19.0% and a profit attributable to owners of HK$172.7 million, marking a turnaround from a loss in the previous year. The company did not recommend any interim dividend for the period.

South Manganese Reports Positive Profit Turnaround for 1H2025

South Manganese Investment Limited has announced a significant turnaround in its financial performance for the first half of 2025, expecting a profit of not less than HK$150 million compared to a loss of HK$162.8 million in the same period of 2024. This positive shift is attributed to the optimization of the trade product mix, effective cost control measures, and reduced impairment losses, signaling improved operational efficiency and financial health.

South Manganese Completes Share Placement to Honor Aim Limited

South Manganese Investment Limited has completed the placement of 822,830,160 new shares to Honor Aim Limited, making it a substantial shareholder with a 16.67% stake. The net proceeds of approximately HK$180.44 million from this placement will be used to repay the company’s outstanding bank borrowings, impacting its financial stability and shareholder structure.