Kinetic Mines & Energy Ltd. (1277) AI Stock Analysis

• Market Cap: HK$9.95B
• Dividend Yield: 13.56%
• Average Volume (3M): 8.05M
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.25
• Revenue Growth: 17.89%
• EPS Growth: 0.63%
• Country: HK
• Employees: 2,520
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Coal
• EPS (TTM): 0.27
• Shares Outstanding: 8,430,000,000
• 10 Day Avg. Volume: 9,340,800
• 30 Day Avg. Volume: 8,051,707
• PEG Ratio: 0.16
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: HK$1.50 ▲(28.21%Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation metrics. While technical analysis provides mixed signals, the low P/E ratio and high dividend yield reflect significant undervaluation, enhancing the investment appeal. Robust cash flows and sound financial management underpin stability, despite potential risks from increased liabilities.

Kinetic Mines & Energy Ltd. Business Overview & Revenue Model

Company Description

Kinetic Mines & Energy Ltd. (1277) is a Hong Kong-based company primarily engaged in the coal mining and energy sector. The company focuses on the exploration, development, and production of coal, particularly in its key asset, the Dafanpu Coal Mine located in Inner Mongolia, China. Kinetic Mines & Energy Ltd. aims to produce high-quality thermal coal for electricity generation and other industrial uses, contributing to energy supply both domestically and internationally.

How the Company Makes Money

Kinetic Mines & Energy Ltd. generates revenue primarily through the extraction and sale of thermal coal from its mining operations. The company sells coal to power generation companies, industrial manufacturers, and other end-users who require coal for energy production. The pricing of coal is influenced by market demand, international coal prices, and regulatory factors within China. Additionally, the company may engage in strategic partnerships or long-term supply agreements with major energy companies to ensure stable revenue streams. Costs are managed through efficient mining operations and logistics management to maximize profitability.

Kinetic Mines & Energy Ltd. Financial Statement Overview

Summary

Kinetic Mines & Energy Ltd. demonstrates strong financial performance with robust profitability and efficient cash conversion. The company shows solid revenue growth and margins, supported by a healthy equity base. However, the increase in total liabilities and negative investing cash flows suggest potential areas for caution.

Income Statement

Kinetic Mines & Energy Ltd. demonstrates a robust financial performance with strong gross and net profit margins, reflecting effective cost management. The revenue growth has been commendable, particularly from 2023 to 2024, indicating a positive trajectory. EBIT and EBITDA margins are solid, showcasing operational efficiency. However, fluctuations in revenue over the years suggest some exposure to market volatility.

Balance Sheet

The company's balance sheet shows a healthy equity base with a reasonable debt-to-equity ratio, indicating prudent financial leverage. The equity ratio is strong, reflecting a solid financial foundation. However, the increase in total liabilities over the years could pose potential risks if not managed properly, though the return on equity remains robust.

Cash Flow

Kinetic Mines & Energy Ltd. has maintained strong free cash flow, with a significant growth rate observed from 2023 to 2024. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to profit. The company also shows good free cash flow to net income ratios, highlighting its ability to convert earnings into cash effectively. However, negative investing cash flows suggest significant reinvestment, which could impact liquidity if not balanced.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.74B	5.66B	4.75B	6.16B	5.58B	2.96B
Gross Profit	2.76B	3.12B	2.80B	4.02B	3.60B	1.28B
EBITDA	2.66B	3.00B	2.68B	3.82B	3.56B	1.36B
Net Income	2.07B	2.11B	2.08B	2.66B	2.47B	814.80M
Balance Sheet
Total Assets	10.94B	12.99B	10.94B	9.49B	6.04B	3.67B
Cash, Cash Equivalents and Short-Term Investments	954.74M	964.35M	954.74M	742.76M	2.66B	1.34B
Total Debt	1.31B	955.88M	1.31B	978.44M	277.96M	210.41M
Total Liabilities	3.52B	4.72B	3.52B	3.18B	1.47B	912.93M
Stockholders Equity	7.37B	8.23B	7.37B	6.33B	4.58B	2.76B
Cash Flow
Free Cash Flow	1.22B	1.90B	1.22B	787.50M	-1.27B	1.11B
Operating Cash Flow	1.71B	2.35B	1.71B	3.09B	3.03B	1.20B
Investing Cash Flow	-903.88M	-818.88M	-903.88M	-4.28B	-873.80M	-540.80M
Financing Cash Flow	-620.77M	-1.63B	-620.77M	-649.88M	-641.01M	-275.20M

Kinetic Mines & Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1277, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 1.15, above the 50-day MA of 1.15, and below the 200-day MA of 1.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.34 is Neutral, neither overbought nor oversold. The STOCH value of 51.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1277.

Kinetic Mines & Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1277	80 Outperform	HK$9.95B	4.34	27.12%	13.56%	17.89%	0.63%
1733	75 Outperform	HK$2.54B	2.75	10.58%	15.37%	-3.50%	-56.52%
0975	74 Outperform	$7.26B	3.97	19.62%	―	0.16%	-4.09%
2798	72 Outperform	HK$1.25B	2.61	14.62%	6.41%	-1.93%	-13.59%
0639	70 Outperform	HK$14.76B	9.56	9.12%	6.19%	-14.16%	-19.38%
Sector *	58 Neutral	HK$17.13B	4.61	-6.43%	5.19%	-3.18%	-62.89%
0866	54 Neutral	HK$4.52B	8.25	87.02%	2.25%	-26.23%	147.99%

Kinetic Mines & Energy Ltd. Corporate Events

Kinetic Development Extends Loan Repayment Date in Connected Transaction

Kinetic Development Group Limited, through its subsidiary Guizhou Mining, is involved in a connected transaction with Guizhou Energy, a company indirectly held by a substantial shareholder of Kinetic. The company has announced a Second Supplemental Agreement to extend the repayment date of a RMB200 million loan to Guizhou Energy from June 2025 to June 2027. This extension is part of a connected transaction under Hong Kong’s Listing Rules, which requires announcement and reporting but is exempt from circular and independent shareholders’ approval.

Kinetic Development Group Delays Circular Dispatch for Changlin Acquisition

Kinetic Development Group Limited has announced a delay in the dispatch of a circular related to its acquisition of a 75% equity interest in Changlin. The circular, which was initially expected to be distributed by June 2025, will now be postponed to on or before June 2027 due to additional time needed for restructuring and finalizing necessary information and reports.

Kinetic Development Group Delays Final Dividend Payment

Kinetic Development Group Limited has announced a delay in the payment of its final dividend for the year ended 31 December 2024. Originally scheduled for a single payment, the dividend will now be distributed in three installments due to the need for additional time to transfer funds from domestic to overseas accounts. Despite the delay, the dividend will still be payable to shareholders listed on the record date, maintaining the original dividend amount per share.

Kinetic Development Group Announces Phased Dividend Payment

Kinetic Development Group Limited has announced a final ordinary dividend of HKD 0.015 per share for the financial year ending December 31, 2024. The dividend will be paid in three phases due to the need for additional time to transfer funds internationally, with payments scheduled for June 13, July 31, and August 29, 2025. This decision reflects the company’s operational adjustments to manage financial logistics effectively.

Kinetic Development Group Announces Phased Dividend Payment

Kinetic Development Group Limited has announced an update regarding the payment of its final dividend for the year ended December 31, 2024. The company will distribute the dividend of HKD 0.045 per share in three phases due to the need for additional time to transfer funds from domestic to overseas accounts. The payments will be made on June 13, July 31, and August 29, 2025. This phased approach to dividend distribution may impact shareholders’ cash flow expectations and reflects the company’s operational adjustments in managing its financial resources.

Kinetic Development Group Announces Phased Dividend Payment

Kinetic Development Group Limited has announced an update regarding its final cash dividend for the year ended December 31, 2024. The company will distribute a final dividend of HKD 0.015 per share, approved at the annual general meeting on May 20, 2025. Due to the need for additional time to transfer funds from domestic to overseas accounts, the dividend will be paid in three installments on June 13, July 31, and August 29, 2025. This phased payment approach reflects the company’s operational adjustments to manage its financial obligations effectively.

Kinetic Development Group Secures Shareholder Approval for Key Resolutions

Kinetic Development Group Limited announced the successful approval of all resolutions at its annual general meeting held on May 20, 2025. The resolutions included receiving and considering financial statements, declaring a final dividend, re-electing directors, authorizing director remuneration, re-appointing KPMG as auditor, and approving mandates for share issuance and repurchase. These approvals reflect shareholder confidence in the company’s governance and strategic direction.

Kinetic Development Group Appoints New Joint Company Secretary

Kinetic Development Group Limited has announced the appointment of Ms. Wang Lanlan as a joint company secretary, effective from April 17, 2025. Ms. Wang, who has been with the company since 2019 and currently serves as the chief financial officer and vice president, will work alongside Mr. Chong Yuk Fai to enhance internal control and compliance. This strategic appointment aims to facilitate more efficient internal communications within the company.