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MMG Ltd. (HK:1208)
:1208
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MMG (1208) AI Stock Analysis

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HK:1208

MMG

(OTC:1208)

Rating:70Outperform
Price Target:
HK$4.50
▲(8.43%Upside)
The overall stock score of 70 is driven primarily by strong technical performance and solid financials, which are offset by valuation concerns. The stock shows bullish momentum and improved operational efficiency, but the high P/E ratio and absence of dividends affect its valuation attractiveness.
Positive Factors
Earnings Growth
The 73% earnings CAGR projected for 2024-2026 significantly outpaces the average growth of peers.
Growth Potential
Revised earnings forecasts due to accelerating investments in the Khoemacau Copper Mine indicate strong future growth potential.
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.
Project Risks
Potential risks include volatility in metal prices, social and political issues, regulatory changes, and project execution risk.

MMG (1208) vs. iShares MSCI Hong Kong ETF (EWH)

MMG Business Overview & Revenue Model

Company DescriptionMMG Limited (1208) is a global resources company that specializes in the exploration, development, and mining of base metal deposits. The company primarily focuses on the production of copper, zinc, and other metals, operating mining sites in Australia, the Democratic Republic of the Congo, and Peru. MMG is committed to sustainable mining practices and aims to deliver shareholder value through the efficient and responsible extraction of mineral resources.
How the Company Makes MoneyMMG Limited generates revenue primarily through the sale of copper and zinc, which are extracted from its mining operations. The company operates several key mines, including the Las Bambas copper mine in Peru, which is one of the largest copper mines in the world, and the Kinsevere mine in the Democratic Republic of the Congo. MMG's revenue streams are heavily influenced by global commodity prices, production volumes, and operational efficiencies. The company also engages in strategic partnerships and joint ventures to enhance its operational capabilities and expand its market reach, contributing to its overall earnings.

MMG Financial Statement Overview

Summary
MMG exhibits a strong financial performance with significant improvements in revenue and profitability metrics. The company demonstrates effective leverage management, reflected in a stable balance sheet. While cash flow generation remains healthy, the decline in free cash flow growth rate suggests potential future challenges. MMG's financial health indicates a positive trajectory but requires attention to cash flow sustainability.
Income Statement
78
Positive
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
72
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.48B4.35B3.25B4.25B3.03B
Gross Profit2.13B1.51B1.56B2.64B1.39B
EBITDA2.05B1.50B1.51B2.58B1.32B
Net Income161.90M9.00M172.40M667.10M-64.70M
Balance Sheet
Total Assets14.99B11.90B12.54B13.02B12.30B
Cash, Cash Equivalents and Short-Term Investments192.70M447.00M372.20M1.26B192.70M
Total Debt4.78B4.85B5.55B6.43B7.33B
Total Liabilities8.71B7.59B8.31B9.10B9.63B
Stockholders Equity3.42B2.12B2.14B1.93B936.40M
Cash Flow
Free Cash Flow706.70M1.06B267.60M1.98B843.60M
Operating Cash Flow1.61B1.85B832.10M2.55B1.36B
Investing Cash Flow-2.97B-790.00M-538.70M-573.70M-515.80M
Financing Cash Flow1.10B-985.10M-1.18B-915.20M-867.20M

MMG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.15
Price Trends
50DMA
3.42
Positive
100DMA
2.98
Positive
200DMA
2.83
Positive
Market Momentum
MACD
0.18
Negative
RSI
66.45
Neutral
STOCH
82.91
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 4.15 is above the 20-day moving average (MA) of 3.84, above the 50-day MA of 3.42, and above the 200-day MA of 2.83, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 82.91 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$588.16B15.5327.63%0.10%3.41%60.46%
76
Outperform
$77.18B7.739.58%0.32%-2.20%0.46%
72
Outperform
$214.42B11.8022.95%0.43%12.14%53.33%
70
Outperform
$50.38B34.735.84%2.70%1493.33%
70
Outperform
$76.52B46.1611.20%0.01%35.04%102.30%
70
Outperform
€31.68B10.0719.19%0.57%5.48%38.91%
59
Neutral
HK$17.74B4.73-5.52%3.33%-3.57%-61.41%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1208
MMG
4.15
1.74
72.20%
HK:0358
Jiangxi Copper Company
17.04
4.15
32.20%
HK:1818
Zhaojin Mining Industry Co
20.90
7.75
59.00%
HK:1258
China Nonferrous Mining Corp. Ltd.
7.95
2.87
56.34%
HK:3993
China Molybdenum Co
9.39
3.57
61.40%
HK:2899
Zijin Mining Group Co
22.55
7.68
51.63%

MMG Corporate Events

MMG Limited Reports Strong Copper Production Growth in Q2 2025
Jul 22, 2025

MMG Limited’s Second Quarter Production Report for 2025 shows significant growth in copper production, with a 59% increase compared to the previous year, largely driven by operations at Las Bambas and Khoemacau. Despite challenges in lead and molybdenum production, the company’s overall performance indicates a strong market position, with strategic acquisitions like Khoemacau contributing to its robust output.

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 Schedules Board Meeting to Approve Interim Results
Jul 22, 2025

MMG Limited has announced a board meeting scheduled for August 12, 2025, to approve and publish its interim results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and the company’s market positioning.

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 Projects Significant Profit Increase for H1 2025
Jul 15, 2025

MMG Limited has announced a positive profit alert, expecting a significant increase in net profit after tax attributable to equity holders for the first half of 2025, reaching approximately US$340 million compared to US$21 million in the same period in 2024. This substantial growth is attributed to increased production, reduced unit production costs at Las Bambas, and higher commodity prices. The company is still finalizing its financial results, and stakeholders are advised to exercise caution when dealing with shares.

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 Supply Agreement for Khoemacau Project Expansion
Jun 9, 2025

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
May 22, 2025

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.

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: Jul 23, 2025