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

• Market Cap: HK$13.32B
• Dividend Yield: 9.09%
• Average Volume (3M): 16.67M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.19
• Revenue Growth: -2.79%
• EPS Growth: -39.45%
• Country: HK
• Employees: 2,520
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.07
• Shares Outstanding: 8,430,000,000
• 10 Day Avg. Volume: 22,064,441
• 30 Day Avg. Volume: 16,669,548
• PEG Ratio: 0.00
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 5.35
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: HK$2.00 ▲(39.86% Upside)

Kinetic Mines & Energy Ltd. scores highly due to its strong financial performance and attractive valuation. The stock's positive technical indicators further support its potential. However, the increase in liabilities and reinvestment activities should be monitored to maintain financial health.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates effective cash generation, providing the company with the flexibility to invest in growth opportunities and manage debt.

Profitability

Solid profit margins and revenue growth reflect effective cost management and operational efficiency, supporting sustainable profitability.

Balance Sheet Health

A strong equity base and prudent financial leverage enhance financial stability, enabling the company to withstand market fluctuations.

Negative Factors

Revenue Growth Volatility

Revenue volatility can impact predictability and planning, posing challenges in maintaining consistent growth and financial performance.

Increasing Liabilities

Rising liabilities may strain financial resources, potentially affecting liquidity and increasing financial risk if not carefully managed.

Negative Investing Cash Flows

Substantial reinvestment activities, while potentially beneficial long-term, may reduce short-term liquidity, affecting operational flexibility.

Kinetic Mines & Energy Ltd. Business Overview & Revenue Model

Company Description

Kinetic Development Group Limited, an investment holding company, engages in the extraction and sale of coal products in the People's Republic of China. The company focuses on the development of its Dafanpu Coal Mine with a concession area of approximately 9.6 square kilometers located in Zhunge'er Banner, Ordos City, Inner Mongolia, China. It also engages in the coal production, trading, washing, loading, and transportation activities; and sale of mineral products. In addition, the company is involved in the breeding, production, and selling of breeding stock; and production and sale of wine and fruit wine, as well as grape planting activities. The company was formerly known as Kinetic Mines and Energy Limited. Kinetic Development Group Limited was incorporated in 2010 and is headquartered in Ordos City, China.

How the Company Makes Money

Kinetic Mines & Energy Ltd. generates revenue through multiple streams, primarily from the sale of extracted minerals and metals to industrial clients and manufacturers. The company capitalizes on the high demand for raw materials in various sectors, including construction and manufacturing. Additionally, Kinetic Mines & Energy has entered into strategic partnerships with other firms for joint ventures in mining projects, which not only diversifies its income sources but also reduces operational risks. The company may also earn revenue through energy generation, particularly from renewable sources, which can provide a steady income stream through power sales. Factors contributing to its earnings include commodity price fluctuations, operational efficiency, and the demand for sustainable energy solutions in the market.

Kinetic Mines & Energy Ltd. Financial Statement Overview

Summary

Kinetic Mines & Energy Ltd. demonstrates strong financial performance with robust profit margins and efficient cash conversion. The company shows solid revenue growth and operational efficiency, though it faces potential risks from market volatility and increasing liabilities.

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	5.61B	5.66B	4.75B	6.16B	5.58B	2.96B
Gross Profit	2.75B	3.12B	2.80B	4.02B	3.60B	1.28B
EBITDA	2.30B	3.00B	2.68B	3.82B	3.56B	1.36B
Net Income	1.58B	2.11B	2.08B	2.66B	2.47B	814.80M
Balance Sheet
Total Assets	14.39B	12.99B	10.94B	9.49B	6.04B	3.67B
Cash, Cash Equivalents and Short-Term Investments	601.91M	964.35M	954.74M	742.76M	2.66B	1.34B
Total Debt	902.63M	955.88M	1.31B	978.44M	277.96M	210.41M
Total Liabilities	6.15B	4.72B	3.52B	3.18B	1.47B	912.93M
Stockholders Equity	8.18B	8.23B	7.37B	6.33B	4.58B	2.76B
Cash Flow
Free Cash Flow	1.14B	1.90B	1.22B	787.50M	-1.27B	1.11B
Operating Cash Flow	1.30B	2.35B	1.71B	3.09B	3.03B	1.20B
Investing Cash Flow	-424.99M	-818.88M	-903.88M	-4.28B	-873.80M	-540.80M
Financing Cash Flow	-589.90M	-1.63B	-620.77M	-649.88M	-641.01M	-275.20M

Kinetic Mines & Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1277, the sentiment is Neutral. The current price of 1.43 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.53, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 31.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	HK$13.32B	7.81	19.63%	9.09%	-2.79%	-39.45%
0639	79 Outperform	HK$15.07B	13.92	6.64%	9.12%	-5.78%	-29.52%
1733	73 Outperform	€2.43B	8.83	3.21%	20.45%	-23.72%	-86.69%
2798	69 Neutral	€1.60B	7.95	6.31%	4.31%	-26.28%	-69.55%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0975	58 Neutral	$10.28B	16.19	6.76%	―	-20.50%	-64.45%
0866	46 Neutral	HK$7.38B	20.21	81.71%	1.45%	-20.71%	209.68%

Kinetic Mines & Energy Ltd. Corporate Events

Kinetic Development Group Expands Property Portfolio with Key Acquisitions

Kinetic Development Group Limited, a company incorporated in the Cayman Islands, has announced significant transactions involving the acquisition of Taiyuan Seedland and Dongzhimen Properties. These transactions are part of a series of agreements and adjustments to previous property purchase agreements, reflecting the company’s strategic moves in property acquisition. The acquisition of Taiyuan Hetai and the transfer of 2024 Target Properties highlight Kinetic’s ongoing efforts to optimize its property portfolio. The completion of these transactions, including the payment of corporate income tax by Kinetic Qinhuangdao, underscores the company’s commitment to expanding its real estate holdings and potentially enhancing its market position.

Kinetic Development Group Expands Stake in MC Mining and Advances Makhado Project

Kinetic Development Group Limited has announced the successful completion of the first to fifth tranches of its share subscription in MC Mining, now holding approximately 40.13% of the enlarged issued share capital. The Makhado Project, MC Mining’s flagship coal development in South Africa, is progressing well with key infrastructure expected to be completed by December 2025, positioning the company for coal output and joint commissioning by January 2026. This strategic move is seen as a significant opportunity for Kinetic to expand its stake to 51% and participate in the growth of a high-quality mining asset.