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South Manganese Investment Limited (HK:1091)
:1091
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South Manganese Investment Limited (1091) AI Stock Analysis

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HK:1091

South Manganese Investment Limited

(Frankfurt:1091)

Rating:51Neutral
Price Target:
HK$0.50
▲(25.00% Upside)
The overall stock score is primarily influenced by significant financial challenges, including declining revenues and high leverage, which pose substantial risks. While technical indicators show some positive momentum, the poor valuation due to negative earnings further weighs down the score. The absence of earnings call insights and corporate events leaves these areas unaddressed.

South Manganese Investment Limited (1091) vs. iShares MSCI Hong Kong ETF (EWH)

South Manganese Investment Limited Business Overview & Revenue Model

Company DescriptionSouth 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 MoneySouth Manganese Investment Limited generates revenue through the extraction and sale of manganese ore and processed manganese products. The company's primary revenue streams include selling raw manganese ore to steel manufacturers and other industrial clients who use manganese as an alloying element to improve the strength and durability of steel. Additionally, the company may sell refined manganese for use in producing batteries, particularly for electric vehicles and energy storage systems. Key factors contributing to its earnings include market demand for manganese, efficient mining operations, and strategic partnerships with steel producers and technology companies.

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 further exacerbate financial risks, especially in an uncertain market environment. The company needs strategic realignments to improve its operational efficiency and financial stability.
Income Statement
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.21B17.13B16.03B12.83B4.37B
Gross Profit406.37M934.15M1.37B2.34B576.50M
EBITDA137.07M808.66M1.06B1.63B300.64M
Net Income-725.07M64.14M336.09M454.58M-457.85M
Balance Sheet
Total Assets8.79B11.37B11.45B10.98B9.06B
Cash, Cash Equivalents and Short-Term Investments402.33M1.15B1.18B1.05B1.13B
Total Debt3.95B5.12B4.46B4.11B4.57B
Total Liabilities6.81B8.54B8.62B7.94B6.51B
Stockholders Equity2.36B3.14B3.17B3.11B2.52B
Cash Flow
Free Cash Flow1.01B-860.95M-111.77M888.67M123.61M
Operating Cash Flow1.60B-319.82M935.91M1.60B596.78M
Investing Cash Flow-868.55M-498.82M-921.12M-775.17M-540.39M
Financing Cash Flow-1.29B655.09M239.90M-951.00M-65.41M

South Manganese Investment Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.34
Positive
100DMA
0.31
Positive
200DMA
0.33
Positive
Market Momentum
MACD
0.02
Positive
RSI
55.48
Neutral
STOCH
40.48
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 0.4 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.34, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.24B6.180.71%2.90%3.45%-36.02%
51
Neutral
HK$2.07B-14.35%-31.35%-71.37%
$250.03M-5.26%
€140.93M-4.73%
71
Outperform
HK$22.76B11.6517.83%2.70%36.51%66.77%
67
Neutral
HK$32.60B32.8136.46%0.97%31.24%58.51%
49
Neutral
HK$1.04B-4702.63%0.41%83.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1091
South Manganese Investment Limited
0.40
0.07
21.21%
CREQF
China Rare Earth Holdings
0.30
0.27
900.00%
DE:WA2
Brockman Mining Ltd.
0.01
0.00
0.00%
HK:2245
Lygend Resources & Technology Co., Ltd. Class H
14.40
8.55
146.15%
HK:3939
Wanguo International Mining Group Ltd.
34.50
26.20
315.66%
HK:0433
North Mining Shares Co., Ltd.
0.07
0.05
250.00%

South Manganese Investment Limited Corporate Events

South Manganese Reports Positive Profit Turnaround for 1H2025
Aug 5, 2025

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
Jul 28, 2025

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.

South Manganese Investment to Raise HK$180 Million for Debt Repayment
Jul 15, 2025

South Manganese Investment Limited announced a supplemental update on its plan to place new shares under a general mandate, aiming to raise approximately HK$180.44 million net proceeds. The funds will be used to repay outstanding bank borrowings, thereby improving the company’s financial stability and potentially enhancing its market position.

South Manganese Secures Shareholder Approval for Debt Reduction
Jul 9, 2025

South Manganese Investment Limited announced the successful approval of a debt reduction proposal during its special general meeting held on July 9, 2025. The resolution received overwhelming support, with nearly all votes cast in favor, indicating strong shareholder backing for the company’s financial restructuring efforts. This move is expected to enhance the company’s financial stability and potentially improve its market position.

South Manganese Investment Limited Announces Share Placing to Raise HK$180.44 Million
Jul 8, 2025

South Manganese Investment Limited has announced a placing of new shares under a general mandate, with the aim of raising approximately HK$180.44 million in net proceeds. The funds will be used to repay the company’s outstanding bank borrowings, potentially improving its financial stability and operational flexibility.

South Manganese Investment Limited to Hold SGM for Debt Reduction Proposal
Jun 19, 2025

South Manganese Investment Limited has announced a Special General Meeting (SGM) scheduled for July 9, 2025, to consider and approve a debt reduction proposal. This move indicates the company’s strategic efforts to improve its financial health, which could potentially enhance its market position and benefit stakeholders by reducing financial liabilities.

South Manganese Investment Limited Updates Board Composition and Roles
Jun 10, 2025

South Manganese Investment Limited announced the current composition of its board of directors and their roles within the company. The announcement includes details about the executive, non-executive, and independent non-executive directors, as well as their membership in various board committees, effective from June 10, 2025. This update provides clarity on the governance structure and could impact the company’s strategic direction and stakeholder confidence.

South Manganese Investment Limited Appoints New Chairman of Nomination Committee
Jun 10, 2025

South Manganese Investment Limited has announced the appointment of Mr. Wu Qi as the chairman of its nomination committee, effective from June 10, 2025. This strategic appointment is expected to enhance the governance and leadership structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

South Manganese Investment Limited AGM Resolutions Passed
Jun 6, 2025

South Manganese Investment Limited announced the results of its Annual General Meeting held on June 6, 2025. All resolutions, including the re-election of several directors and the authorization for the board to fix directors’ and auditors’ remuneration, were passed with significant majorities. The approval of these resolutions reflects strong shareholder support and is expected to ensure stability in the company’s governance and operations.

South Manganese Investment Limited Announces Debt Reduction Strategy
Jun 4, 2025

South Manganese Investment Limited has announced a debt reduction proposal approved by its Board, aiming to enhance its credit rating and improve financial flexibility. The proposal involves using available free cash flows to repay debts and optimize the debt structure, targeting a reduction in indebtedness by RMB300 million to RMB500 million annually and lowering the gearing ratio to 50% or below within five years.

South Manganese Investment Limited Announces Board Composition and Roles
May 20, 2025

South Manganese Investment Limited has announced the composition of its board of directors and the roles within its board committees, effective from May 20, 2025. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder relations.

South Manganese Announces Director Resignation and AGM Resolution Withdrawal
May 20, 2025

South Manganese Investment Limited announced the resignation of Mr. Zhang Yupeng as an independent non-executive director, effective May 20, 2025, due to personal development and business commitments. Consequently, the resolution for his re-election will be withdrawn from the upcoming annual general meeting agenda. The company expressed gratitude for Mr. Zhang’s contributions and will announce a new chairman for the Nomination Committee in due course.

South Manganese Investment Secures Shareholder Approval for Key Agreements
May 16, 2025

South Manganese Investment Limited announced the results of its Special General Meeting held on May 16, 2025, where shareholders overwhelmingly approved the Guangxi Dameng Sales and Purchase Framework Agreements. These agreements, which received over 99.99% approval, are expected to enhance the company’s operational capabilities and strengthen its market position within the manganese industry.

South Manganese Investment Limited Reduces Directors’ Fees
May 16, 2025

South Manganese Investment Limited has announced a significant reduction in the annual fees for its directors, decreasing from HK$300,000 to HK$50,000, effective June 1, 2025. This decision, approved by the board, reflects the company’s response to current market conditions and aims to align with prevailing director fee levels, benefiting the company and its shareholders.

South Manganese Investment Limited Announces 2025 AGM Agenda
May 13, 2025

South Manganese Investment Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 6, 2025, in Hong Kong. Key agenda items include reviewing the audited financial statements for 2024, re-electing directors, and authorizing the board to set remuneration for directors and auditors. Additionally, the company seeks approval to issue new shares and securities, which could impact its capital structure and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025