CGN Mining Co (1164) AI Stock Analysis

• Market Cap: HK$25.46B
• Dividend Yield: 0.31%
• Average Volume (3M): 98.02M
• Price to Earnings (P/E): 158.0
• Beta (1Y): 0.53
• Revenue Growth: -26.37%
• EPS Growth: -62.54%
• Country: HK
• Employees: 27
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): >-0.01
• Shares Outstanding: 7,600,682,600
• 10 Day Avg. Volume: 127,798,558
• 30 Day Avg. Volume: 98,023,337
• PEG Ratio: -1.16
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -13.71
• 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: HK$3.73
• Price Target Upside: 11.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$3.00 ▼(-10.45% Downside)

The overall stock score reflects significant financial performance challenges, with declining profitability and cash flow issues being the most impactful factors. Technical analysis indicates a bearish trend, and the valuation suggests potential overvaluation. These factors combined result in a cautious outlook for the stock.

Positive Factors

Strategic Partnerships

Strategic partnerships with major nuclear power corporations ensure a steady demand for uranium, enhancing revenue stability and growth potential.

Industry Position

Being a subsidiary of China General Nuclear Power Corporation provides strategic support and access to a broad customer base, strengthening market position.

Revenue Streams

Diverse revenue streams from long-term contracts and spot sales provide financial stability and mitigate risks associated with market volatility.

Negative Factors

Profitability Challenges

Negative profitability margins indicate operational inefficiencies, which could hinder long-term financial performance and growth prospects.

Cash Flow Issues

Significant decline in operating cash flow suggests reduced financial flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Return on Equity

A declining return on equity reflects reduced profitability and efficiency in generating returns from shareholder investments, impacting long-term value creation.

CGN Mining Co Business Overview & Revenue Model

Company Description

CGN 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 Money

CGN Mining Co generates revenue primarily through the sale of uranium, which is used as fuel in nuclear power plants. The company benefits from long-term contracts with utility companies and nuclear power operators, which provide stable cash flow and mitigate market volatility. Additionally, CGN Mining Co engages in the trading of uranium, capitalizing on price fluctuations in the market. The company may also receive income from strategic partnerships and joint ventures that enhance its mining capabilities and exploration efforts, further contributing to its revenue streams.

CGN Mining Co Financial Statement Overview

Summary

CGN Mining Co faces significant operational challenges, with declining profitability margins and cash flow issues. Despite revenue growth, negative gross profit, EBIT, and EBITDA margins in 2024 highlight operational inefficiencies. Balance sheet stability offers some cushion, but declining return on equity and cash flow concerns indicate underlying financial health issues.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	8.62B	7.36B	3.65B	3.86B	2.86B
Gross Profit	-256.48M	-66.12M	131.93M	148.03M	88.28M	202.77M
EBITDA	-270.59M	-78.36M	692.81M	107.34M	108.01M	226.42M
Net Income	161.29M	341.98M	497.10M	514.91M	178.50M	155.22M
Balance Sheet
Total Assets	8.58B	7.84B	6.75B	6.87B	6.35B	4.19B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.15B	1.02B	52.39M	81.29M	1.17B
Total Debt	3.33B	2.92B	1.76B	2.40B	3.03B	1.96B
Total Liabilities	4.71B	3.92B	2.87B	3.52B	4.19B	2.16B
Stockholders Equity	3.87B	3.92B	3.88B	3.35B	2.16B	2.03B
Cash Flow
Free Cash Flow	-954.26M	-903.41M	1.04B	463.74M	242.30M	-327.12M
Operating Cash Flow	-954.18M	-903.36M	1.04B	464.33M	242.69M	-326.59M
Investing Cash Flow	25.26M	577.25M	498.79M	418.56M	-3.37B	25.72M
Financing Cash Flow	558.06M	471.39M	-581.91M	-481.74M	1.98B	785.98M

CGN Mining Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.35 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 3.26, and above the 200-day MA of 2.43, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 89.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2883	77 Outperform	HK$58.12B	8.85	8.58%	3.59%	2.58%	7.10%
1171	72 Outperform	HK$128.98B	8.01	―	8.02%	0.80%	-35.81%
0883	68 Neutral	HK$1.01T	7.10	17.50%	6.76%	-9.81%	-8.84%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
1033	60 Neutral	HK$36.01B	19.44	6.58%	―	1.90%	-8.51%
0338	57 Neutral	HK$26.01B	-92.31	-0.59%	1.65%	-11.11%	62.07%
1164	45 Neutral	HK$25.46B	158.02	8.90%	0.31%	-26.37%	-62.54%

CGN Mining Co Corporate Events

CGN Mining Co Reports Strong Q3 Uranium Production and Trading Performance

In the third quarter of 2025, CGN Mining Co reported a natural uranium production of 644.3tU, achieving 96.5% of its production plan. The company’s joint ventures in Kazakhstan, Semizbay-U and Ortalyk, played a crucial role in this output. Despite a strategic reduction in production due to exceeding targets in the first half of the year, the cumulative completion rates remained above 100%. On the trading front, CGN Mining Co held 1,454tU of natural uranium and reported contracted sales of 3,965tU, with procurement and sales prices reflecting market conditions. The announcement highlights the company’s strategic management of production and trading activities, positioning it effectively within the natural uranium market.