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CGN Mining Co Ltd (HK:1164)
:1164

CGN Mining Co (1164) AI Stock Analysis

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HK

CGN Mining Co

(OTC:1164)

Rating:60Neutral
Price Target:
HK$2.50
▼(-1.19%Downside)
The overall stock score of 60 reflects the significant financial challenges faced by the company, including declining profitability and cash flow issues. Despite bullish technical indicators suggesting positive short-term momentum, the high valuation raises concerns about future growth expectations. The absence of earnings call insights limits our understanding of management's outlook and strategic direction.
Positive Factors
Analyst Recommendation
The analyst has increased the target price based on the new pricing mechanism and maintains a BUY recommendation.
Earnings Potential
The fixed price in the new agreement is significantly higher than both the current mechanism and the latest industry contract price, indicating strong future earnings potential.
Uranium Market Dynamics
The uranium spot price recovery is expected to drive positive share price momentum for CGN Mining.
Negative Factors
Dividend Withholding Tax
Upcoming 15% dividend withholding tax and recent pullback of uranium price lead to a revision down of the 2025E/26E price assumption.
Equity Interest Loss
The conversion of CGN Mining's equity interest in Fission Uranium to a smaller equity interest in Paladin Energy resulted in a loss from discontinued operations.
Taxation Impact
Kazakhstan’s mineral extraction tax rate will increase to 9% in 2025, likely pushing unit production costs higher.

CGN Mining Co (1164) vs. iShares MSCI Hong Kong ETF (EWH)

CGN Mining Co Business Overview & Revenue Model

Company DescriptionCGN Mining Company Limited engages in the development and trading of natural uranium resources to nuclear power plants. The company is also involved in property investment and leasing activities. It has operations in Hong Kong, the United States, the People's Republic of China, Canada, the United Kingdom, rest of Europe, and the Czech Republic. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. CGN Mining Company Limited is a subsidiary of China Uranium Development Company Limited.
How the Company Makes MoneyCGN Mining Co. makes money through the extraction, processing, and sale of uranium resources. The company's primary revenue stream comes from selling natural uranium products to nuclear power plants and other entities involved in nuclear energy production. Revenue is generated from long-term contracts and spot market sales, ensuring a steady income stream. Additionally, the company may engage in strategic partnerships and joint ventures that enhance its production capabilities and market reach, further contributing to its earnings.

CGN Mining Co Financial Statement Overview

Summary
CGN Mining Co faces significant operational challenges, as evidenced by declining profitability margins and cash flow issues. While growth in revenue is a positive sign, the negative gross profit, EBIT, and EBITDA margins in 2024 highlight substantial operational inefficiencies. Balance sheet stability provides some cushion, but declining return on equity and cash flow concerns point to underlying financial health issues.
Income Statement
45
Neutral
The company experienced inconsistent revenue growth, with an increase of 17.1% from 2023 to 2024, but a net loss in gross profit margin. Net profit margin dropped significantly from 6.7% in 2023 to 4.0% in 2024, indicating decreased profitability. Additionally, both EBIT and EBITDA margins turned negative in 2024, showing operational struggles.
Balance Sheet
65
Positive
The company has a moderate debt-to-equity ratio of 0.74 in 2024, which is relatively stable. The equity ratio improved to 50.0% in 2024, indicating a strong capital base. However, the return on equity decreased from 12.8% in 2023 to 8.7% in 2024, reflecting declining profitability.
Cash Flow
50
Neutral
Operating cash flow fell from 1.04 billion in 2023 to zero in 2024, indicating cash flow challenges. Free cash flow also decreased sharply, suggesting reduced financial flexibility. The absence of operating cash flow to net income and free cash flow to net income ratios highlights cash flow inefficiencies despite prior year's positive performance.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.62B7.36B3.65B3.86B2.86B
Gross Profit-66.12M131.93M148.03M88.28M202.77M
EBITDA-127.91M692.81M107.34M108.01M226.42M
Net Income341.98M497.10M514.91M178.50M155.22M
Balance Sheet
Total Assets7.84B6.75B6.87B6.35B4.19B
Cash, Cash Equivalents and Short-Term Investments1.15B1.02B52.39M81.29M1.17B
Total Debt2.92B1.76B2.40B3.03B1.96B
Total Liabilities3.92B2.87B3.52B4.19B2.16B
Stockholders Equity3.92B3.88B3.35B2.16B2.03B
Cash Flow
Free Cash Flow-903.41M1.04B463.74M242.30M-327.12M
Operating Cash Flow-903.36M1.04B464.33M242.69M-326.59M
Investing Cash Flow577.25M498.79M-592.00K-3.37B-524.00K
Financing Cash Flow471.39M-581.91M-481.74M2.03B823.73M

CGN Mining Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.53
Price Trends
50DMA
1.88
Positive
100DMA
1.68
Positive
200DMA
1.68
Positive
Market Momentum
MACD
0.18
Negative
RSI
70.46
Negative
STOCH
86.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1164, the sentiment is Positive. The current price of 2.53 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 1.88, and above the 200-day MA of 1.68, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1164.

CGN Mining Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
60
Neutral
$19.61B57.3313.49%0.27%17.13%-31.19%
$7.32B8.627.81%3.80%
$3.49B82.790.58%1.63%
$4.20B16.537.73%
$14.44B5.0622.05%7.21%
€97.01B5.7919.25%7.24%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1164
CGN Mining Co
2.53
0.07
2.97%
CHOLF
China Oilfield Services
0.86
-0.02
-2.27%
SPTJF
Sinopec Shanghai Petrochemical Co
0.16
0.02
14.29%
YZCFF
Sinopec Oilfield Service
0.08
0.02
33.33%
YZCHF
Yankuang Energy Group Company Limited Class H
1.03
-0.28
-21.37%
DE:NC2B
CNOOC Limited
2.18
-0.43
-16.48%

CGN Mining Co Corporate Events

CGN Mining Co. Announces Change in Share Registrar Office
Jul 3, 2025

CGN Mining Company Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective from August 1, 2025. The new registrar will be Tricor Investor Services Limited, and all share transfer applications will be handled by them from this date. This change is part of the company’s operational adjustments, potentially impacting shareholders who need to update their records and manage share transfers through the new office.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co. Announces Board Changes
Jun 30, 2025

CGN Mining Company Limited, a company incorporated in the Cayman Islands, announced a change in its board composition. Ms. Dai Qijia has resigned from her position as an independent non-executive director and other committee roles due to personal career development. Concurrently, Mr. Wu Yingpeng has been appointed as an independent non-executive director, bringing his legal expertise to the board. These changes are expected to impact the company’s governance and strategic direction.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co Announces Board Composition and Roles
Jun 30, 2025

CGN Mining Co has announced the composition of its board of directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to various board committees such as Audit, Remuneration, Nomination, and Environmental, Social, and Governance. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and oversight mechanisms in place.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.18 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co Delays Circular Distribution for Key Agreements
Jun 23, 2025

CGN Mining Co announced a delay in the distribution of its circular related to several framework agreements, including the New Sales Framework Agreement, New Financial Services Framework Agreement, and the Sales and Purchase Agreement of Natural Uranium. The circular, initially expected to be distributed within 15 business days from the announcement date, will now be distributed on or before July 15, 2025, due to the need for additional time to finalize certain information. This delay may impact shareholder expectations and timelines for the company’s ongoing transactions.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co Announces Successful Approval of AGM Resolutions
Jun 19, 2025

CGN Mining Co, a company incorporated in the Cayman Islands, announced that all resolutions proposed at its Annual General Meeting held on June 19, 2025, were approved by shareholders. The resolutions included the adoption of financial statements, declaration of a final cash dividend, re-election of directors, and authorization for the board to fix directors’ remuneration and appoint auditors. Additionally, shareholders granted the board mandates to issue new shares and repurchase shares, reflecting strong shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co Announces Senior Management Changes
Jun 19, 2025

CGN Mining Co has announced a change in its senior management, appointing Mr. Zhang Xueliang as a vice president. Mr. Zhang brings extensive experience from his previous roles in nuclear power research and management. This change is part of a strategic work arrangement, with Mr. Shan Xuequn and Mr. Zhou Rongsheng stepping down from their roles as assistant presidents. The board expressed gratitude for their contributions and welcomed Mr. Zhang to his new position, indicating a potential shift in company operations and strategy.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co Extends Uranium Sales and Financial Services Agreements
Jun 3, 2025

CGN Mining Co has entered into new framework agreements to continue its transactions related to the sale of natural uranium and financial services with its subsidiaries, extending these agreements for another three years starting January 2026. These agreements, which involve major transactions and connected transactions under the Hong Kong Listing Rules, require approval from independent shareholders and are subject to annual reporting and review requirements.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co’s Controlling Shareholder Reduces Stake
Jun 1, 2025

CGN Mining Company Limited announced a reduction in the long position of its controlling shareholder, CGNPC, from 57.01% to 56.43% following the disposal of shares by CGN Investment HK. Despite this reduction, CGNPC maintains confidence in the company and its subsidiary, China Uranium Development, which has retained its shares since 2011. The disposals were part of CGN Investment HK’s investment strategy, and none of the shares were acquired by connected persons of the company.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co. Announces 2025 AGM Agenda and Key Resolutions
May 27, 2025

CGN Mining Company Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 19, 2025, in Beijing. Key agenda items include the adoption of financial statements for the year ending December 31, 2024, the declaration of a final cash dividend of HK0.7 cents per share, and the re-election of several directors. Additionally, the company plans to re-appoint BDO Limited as auditors and authorize the board to fix their remuneration. The AGM will also consider resolutions to allow the directors to issue additional shares, subject to certain conditions.

The most recent analyst rating on (HK:1164) stock is a Buy with a HK$2.36 price target. To see the full list of analyst forecasts on CGN Mining Co stock, see the HK:1164 Stock Forecast page.

CGN Mining Co. Surpasses Q1 Uranium Production Targets, Reports Strong Trading Activity
Apr 22, 2025

In the first quarter of 2025, CGN Mining Co. exceeded its natural uranium production targets, achieving a 110.7% completion rate, with significant contributions from its Kazakhstan-based joint ventures, Semizbay-U and Ortalyk. The company also reported holding substantial uranium inventory and entered new contracts for procurement and sales, indicating robust trading activity. However, the data is preliminary and subject to change, and stakeholders are cautioned about potential risks due to external factors.

CGN Mining Announces Leadership Changes with New CEO Appointment
Apr 15, 2025

CGN Mining Company Limited has announced a significant change in its leadership structure, effective April 15, 2025. Mr. Wang Xianfeng has transitioned from the role of Chief Executive Officer to a non-executive Director while continuing as the Chairman of the Board. Mr. Qiu Bin, with over 30 years of experience in the nuclear fuel industry, has been appointed as the new Chief Executive Officer and an executive Director. This change aims to clearly delineate the responsibilities between the Chairman and CEO roles, potentially impacting the company’s strategic direction and operational efficiency. Additionally, Mr. Yin Xiong has resigned as a non-executive Director due to retirement, with no disagreements or issues reported.

CGN Mining Co Updates Board of Directors and Committee Roles
Apr 15, 2025

CGN Mining Company Limited, incorporated in the Cayman Islands, has announced its updated list of directors and their roles within the company. The board comprises executive, non-executive, and independent non-executive directors, each serving on various committees such as Audit, Remuneration, Nomination, and Environmental, Social and Governance. This announcement provides clarity on the governance structure and committee responsibilities, potentially impacting the company’s strategic direction and stakeholder engagement.

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: Jun 17, 2025