MMG (1208) AI Stock Analysis

• Market Cap: $47.11B
• Dividend Yield: N/A
• Average Volume (3M): 77.23M
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.09
• Revenue Growth: 2.70%
• EPS Growth: 1493.33%
• Country: HK
• Employees: 5,195
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Copper
• EPS (TTM): 0.16
• Shares Outstanding: 12,140,530,000
• 10 Day Avg. Volume: 62,994,065
• 30 Day Avg. Volume: 77,231,410
• PEG Ratio: -0.16
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.77
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $4.24
• Price Target Upside: 4.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: HK$4.00 ▼(-1.23%Downside)

The stock's strong financial performance is a key positive factor, supported by revenue growth and profitability improvements. However, technical indicators warn of overbought conditions, and the high P/E ratio raises valuation concerns. These factors collectively result in a moderate overall stock score.

Positive Factors

Growth Potential

Strong earnings growth with rerating imminent, supported by increased copper sales volume from newly developed and acquired assets.

Strategic Positioning

MMG is strategically increasing its copper assets, making it an ideal proxy to track copper markets.

Valuation

MMG is trading at an attractive valuation, with metrics such as 4.7x EV/EBITDA, 1.0x P/BV, and 10.7x P/E, which are the most attractive among peers.

Negative Factors

Market Risks

Major risks include volatility in metal prices, social and political issues, regulatory changes, and potential operational disruptions.

Operational Challenges

Potential operational disruptions present a risk to MMG's performance.

Project Execution

Potential risks include volatility in metal prices, social and political issues, regulatory changes, and project execution risk.

MMG Business Overview & Revenue Model

Company Description

MMG Limited (1208) is a global resources company that explores, develops, and mines base metal deposits around the world. The company primarily focuses on the production of copper, zinc, lead, and other minerals. MMG operates several mining sites and has a strong presence in regions like Australia, Africa, and South America, contributing significantly to the supply chain of essential metals used in various industries.

How the Company Makes Money

MMG Limited generates its revenue through the extraction, production, and sale of base metals such as copper and zinc. The company's key revenue streams include the sale of these metals to industrial clients and commodity markets. Additionally, MMG may engage in joint ventures and partnerships to optimize its mining operations and expand its market reach. The company's earnings are influenced by global commodity prices, production volumes, and operational efficiencies at its mining sites. Strategic investments in exploration and development projects also play a role in sustaining and growing its revenue base.

MMG Financial Statement Overview

Summary

MMG shows strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet is stable with effective leverage management, but declining free cash flow growth is a concern.

Income Statement

MMG's income statement highlights a solid financial performance with notable revenue growth from $4,346.5M in 2023 to $4,479.2M in 2024, a growth rate of 3.06%. The gross profit margin improved significantly, reflecting strong operational efficiency, with the gross profit increasing from $1,513.7M to $2,134.4M. Net income also saw a substantial increase to $161.9M from $9M, greatly enhancing the net profit margin. However, the volatility in net income over the years suggests some instability. The EBIT and EBITDA margins remain strong, indicating robust core earnings.

Balance Sheet

The balance sheet of MMG shows a solid equity position with stockholder equity rising to $3,419M in 2024. The debt-to-equity ratio improved as total debt decreased slightly from $4,854.7M to $4,777M, suggesting cautious leverage management. However, the equity ratio is moderate, indicating a balanced but not overly strong asset-financing structure. Overall, the balance sheet demonstrates stability but leaves some room for improvement in leverage metrics.

Cash Flow

MMG's cash flow statement reveals adequate cash generation with operating cash flow at $1,611.9M in 2024, although it decreased from $1,849.9M in 2023. Free cash flow showed a decline from $1,058.7M to $706.7M, primarily due to increased capital expenditures. The free cash flow to net income ratio has improved, reflecting better cash profitability. However, the decline in free cash flow growth rate is a concern, indicating potential challenges in sustaining cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.48B	4.35B	3.25B	4.25B	3.03B
Gross Profit	2.13B	1.51B	1.56B	2.64B	1.39B
EBITDA	2.05B	1.50B	1.51B	2.58B	1.32B
Net Income	161.90M	9.00M	172.40M	667.10M	-64.70M
Balance Sheet
Total Assets	14.99B	11.90B	12.54B	13.02B	12.30B
Cash, Cash Equivalents and Short-Term Investments	192.70M	447.00M	372.20M	1.26B	192.70M
Total Debt	4.78B	4.85B	5.55B	6.43B	7.33B
Total Liabilities	8.71B	7.59B	8.31B	9.10B	9.63B
Stockholders Equity	3.42B	2.12B	2.14B	1.93B	936.40M
Cash Flow
Free Cash Flow	706.70M	1.06B	267.60M	1.98B	843.60M
Operating Cash Flow	1.61B	1.85B	832.10M	2.55B	1.36B
Investing Cash Flow	-2.97B	-790.00M	-538.70M	-573.70M	-515.80M
Financing Cash Flow	1.10B	-985.10M	-1.18B	-915.20M	-867.20M

MMG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1208, the sentiment is Positive. The current price of 4.05 is above the 20-day moving average (MA) of 3.46, above the 50-day MA of 2.94, and above the 200-day MA of 2.70, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 78.78 is Negative, neither overbought nor oversold. The STOCH value of 85.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1208.

MMG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0358	80 Outperform	$74.99B	7.04	9.58%	5.01%	-2.20%	0.46%
3993	78 Outperform	$198.18B	10.71	22.95%	3.34%	12.14%	53.33%
2899	75 Outperform	HK$576.75B	14.09	27.63%	1.49%	3.41%	60.46%
1258	74 Outperform	€28.45B	9.04	19.19%	4.62%	5.48%	38.91%
1818	70 Outperform	$73.86B	44.56	11.20%	0.26%	35.04%	102.30%
1208	64 Neutral	$47.11B	33.89	5.84%	―	2.70%	1493.33%
Sector *	58 Neutral	HK$17.13B	4.61	-6.43%	5.19%	-3.18%	-62.89%

MMG Corporate Events

MMG Limited Secures Supply Agreement for Khoemacau Project Expansion

MMG Limited has entered into a Supply Agreement with MCC TianGong Group for the procurement of 1,200 cabin houses as part of the early works for the Khoemacau expansion project. This agreement, valued at $7.65 million, is considered a connected transaction due to the relationships between the involved parties. The agreement was reached after a competitive bidding process and is deemed to be on fair commercial terms, benefiting the company’s shareholders by ensuring the necessary infrastructure for the project’s development.

The most recent analyst rating on (HK:1208) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on MMG stock, see the HK:1208 Stock Forecast page.

MMG Limited Secures Shareholder Approval for AGM Resolutions

MMG Limited announced that all resolutions proposed at its Annual General Meeting (AGM) held on May 22, 2025, were approved by shareholders. The resolutions included the re-election of directors, authorization for the board to fix directors’ remuneration, appointment of Deloitte Touche Tohmatsu as the company’s auditor, and granting of mandates for the issuance and repurchase of shares. The successful passing of these resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives effectively.

The most recent analyst rating on (HK:1208) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on MMG stock, see the HK:1208 Stock Forecast page.

MMG Limited Reports Mixed First-Quarter 2025 Production Results

MMG Limited reported its first-quarter production results for 2025, highlighting significant increases in copper production, particularly at Las Bambas, which saw a 71% rise compared to the previous year. However, the company faced declines in zinc, lead, and molybdenum production across several sites, with cobalt production ceasing entirely at Kinsevere. These results indicate a mixed performance, with strong copper output potentially bolstering MMG’s market position, while declines in other minerals may pose challenges for the company’s operational balance and stakeholder expectations.

MMG Limited Announces Annual General Meeting and Key Resolutions

MMG Limited has announced its upcoming annual general meeting scheduled for May 22, 2025, where key agenda items include reviewing the audited financial statements for 2024, re-electing directors, and appointing Deloitte Touche Tohmatsu as the auditor. Additionally, shareholders will consider a resolution to authorize the board to issue additional shares, which could impact the company’s capital structure and market positioning.

MMG Limited Announces Closure of Register for AGM

MMG Limited has announced the closure of its register of members from May 19 to May 22, 2025, during which no share transfers will be registered. This closure is to determine shareholders’ eligibility to attend and vote at the annual general meeting scheduled for May 22, 2025, highlighting the company’s procedural steps in corporate governance.

MMG Limited Secures Zinc Concentrate Sale Agreement with Minmetals North-Europe

MMG Limited has entered into the Dugald River Zinc Concentrate Sale Agreement with Minmetals North-Europe, a subsidiary of its controlling shareholder CMC, marking it as a connected transaction under Hong Kong’s Listing Rules. The agreement involves the sale of approximately 10,000 dry metric tonnes of zinc concentrate, valued at around US$13 million, with terms negotiated at arm’s length and consistent with market practices. This transaction reinforces MMG’s business operations by maintaining its market-aligned sales strategy and strengthening its relationship with the CMC Group.