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Metallurgical Corporation of China Ltd. Class H (HK:1618)
:1618
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Metallurgical Corporation of China Ltd. Class H (1618) AI Stock Analysis

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HK:1618

Metallurgical Corporation of China Ltd. Class H

(Frankfurt:1618)

Rating:74Outperform
Price Target:
HK$2.00
▲(9.89%Upside)
The stock shows strong financial performance with a solid equity base and attractive valuation metrics. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility. The absence of new earnings call data and corporate events further concentrates the focus on existing financial and technical factors.

Metallurgical Corporation of China Ltd. Class H (1618) vs. iShares MSCI Hong Kong ETF (EWH)

Metallurgical Corporation of China Ltd. Class H Business Overview & Revenue Model

Company DescriptionMetallurgical Corporation of China Ltd. Class H (1618) is a leading state-owned enterprise in China, specializing in engineering and construction services primarily within the metallurgical industry. The company is engaged in a wide range of sectors, including infrastructure development, real estate, and resources development. MCC is renowned for its comprehensive services in engineering, procurement, and construction (EPC), as well as for its expertise in the design and manufacture of key metallurgical equipment.
How the Company Makes MoneyMetallurgical Corporation of China Ltd. generates revenue through its diverse range of services and projects in the engineering and construction sectors. The company's primary revenue stream comes from its EPC services, where it undertakes large-scale infrastructure projects, including steel and non-ferrous metal production facilities. Additionally, MCC earns income from its involvement in real estate development, providing construction and development services for residential, commercial, and industrial properties. The company also benefits from its resources development activities, which include mining operations and the production of related raw materials. Significant partnerships and contracts with government entities and major corporations further contribute to MCC's earnings, ensuring a steady flow of projects and opportunities for growth.

Metallurgical Corporation of China Ltd. Class H Financial Statement Overview

Summary
Metallurgical Corporation of China Ltd. displays robust financial health with steady revenue growth and reasonable profit margins. A strong equity base and sound cash flow management are evident, although the increase in debt and fluctuations in operational efficiency are concerns.
Income Statement
82
Very Positive
The company has demonstrated a consistent increase in revenue over the years, though there was a decline from 2023 to 2024. Gross Profit Margin and Net Profit Margin are stable, indicating effective cost management. However, the EBIT and EBITDA margins have been fluctuating, suggesting some volatility in operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a strong equity position with a reasonable Debt-to-Equity ratio, though there is a noticeable increase in total debt over time. The Return on Equity is commendable, showing the company’s ability to generate returns on investments.
Cash Flow
70
Positive
Operating Cash Flow has been positive, but Free Cash Flow showed a declining trend, indicating increased capital expenditures. Despite this, the company maintains the ability to generate cash relative to its net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue552.02B633.87B592.67B500.57B400.11B
Gross Profit53.48B61.41B57.15B53.14B45.43B
EBITDA17.01B20.34B21.88B19.61B17.96B
Net Income6.75B8.67B10.28B11.61B7.86B
Balance Sheet
Total Assets808.02B661.60B585.38B543.47B506.39B
Cash, Cash Equivalents and Short-Term Investments52.56B44.44B45.66B41.83B55.35B
Total Debt78.59B66.19B62.88B60.54B68.15B
Total Liabilities625.68B493.61B423.48B392.08B366.04B
Stockholders Equity153.04B145.48B121.11B107.49B97.89B
Cash Flow
Free Cash Flow985.05M1.30B13.84B14.09B24.29B
Operating Cash Flow7.85B5.89B18.15B17.64B28.03B
Investing Cash Flow-9.58B-6.72B-6.56B-12.57B-12.29B
Financing Cash Flow11.06B1.16B-9.67B-16.24B-5.31B

Metallurgical Corporation of China Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.82
Price Trends
50DMA
1.60
Positive
100DMA
1.58
Positive
200DMA
1.60
Positive
Market Momentum
MACD
0.06
Negative
RSI
72.45
Negative
STOCH
85.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1618, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.60, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 72.45 is Negative, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1618.

Metallurgical Corporation of China Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$63.18B6.4414.62%5.16%1.21%2.15%
75
Outperform
HK$84.21B6.438.19%2.83%4.81%1.42%
74
Outperform
HK$68.25B6.155.56%1.75%-19.10%-30.15%
71
Outperform
€27.51B10.287.81%6.20%12.37%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
58
Neutral
€15.20B39.257.03%2.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.87
0.39
26.35%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
6.26
1.70
37.28%
HK:3311
China State Construction International Holdings
11.92
1.72
16.90%
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.45
0.65
82.16%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.69
1.08
67.08%

Metallurgical Corporation of China Ltd. Class H Corporate Events

Metallurgical Corporation of China Announces 2024 Final Dividend Distribution
Jul 14, 2025

Metallurgical Corporation of China Ltd. has announced the distribution of its 2024 final dividend, offering RMB0.56 per 10 shares to shareholders, with payments calculated in Hong Kong dollars. The company has outlined the tax implications for non-resident enterprise and individual holders of H shares, emphasizing the withholding of income tax in accordance with relevant Chinese tax laws and international agreements.

Metallurgical Corporation of China Ltd. Announces 2024 Final Dividend Distribution
Jul 14, 2025

Metallurgical Corporation of China Ltd. has announced the distribution of its 2024 final dividend, declaring a dividend of RMB 0.56 per 10 shares for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars, with a conversion rate of RMB 1 to HKD 1.095441, and is scheduled for payment on August 14, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and investor relations.

Metallurgical Corporation of China Ltd. Reports Mixed Contract Performance in 2025
Jul 14, 2025

Metallurgical Corporation of China Ltd. announced a decrease in the total value of newly signed contracts for the first half of 2025, amounting to RMB548.19 billion, which is 19.1% lower than the previous year. However, the company saw a 32.5% increase in overseas contracts, totaling RMB57.69 billion, indicating a strategic shift towards international markets. This development could impact the company’s operations and market positioning, potentially affecting stakeholders interested in its global expansion.

Metallurgical Corporation of China Ltd. Approves All Resolutions at 2024 AGM
Jun 30, 2025

The Metallurgical Corporation of China Ltd. successfully conducted its 2024 Annual General Meeting on June 30, 2025, where all proposed resolutions were approved by shareholders. With a substantial shareholder turnout representing 57.64% of voting shares, the meeting underscored the company’s robust governance and shareholder engagement, reflecting positively on its operational transparency and strategic direction.

Metallurgical Corporation of China Reports Mixed Contract Performance
Jun 11, 2025

Metallurgical Corporation of China Ltd. announced that the value of its newly signed contracts from January to May 2025 reached RMB396.01 billion, marking a 22.2% decrease compared to the same period last year. However, the company saw a 9.8% increase in the value of its newly signed overseas contracts, totaling RMB28.30 billion. This mixed performance highlights the company’s ongoing challenges in the domestic market while showing growth potential in international projects.

Metallurgical Corporation of China Ltd. Declares Final Dividend for 2024
Jun 9, 2025

Metallurgical Corporation of China Ltd. has announced a final cash dividend of RMB 0.56 per 10 shares for the financial year ending December 31, 2024. The announcement, updated with the date of shareholders’ approval set for June 30, 2025, reflects the company’s commitment to returning value to its shareholders, although key dates regarding the dividend’s payment and related processes remain to be announced.

Metallurgical Corporation of China Ltd. Announces 2024 AGM with Key Resolutions
Jun 6, 2025

Metallurgical Corporation of China Ltd. has announced its 2024 Annual General Meeting, scheduled for June 30, 2025, in Beijing. The meeting will address various resolutions, including the approval of work reports, financial accounts, profit distribution, director emoluments, and auditor appointments. Additionally, the company will discuss entering a new framework agreement with China Minmetals and plans for asset-backed securitization. Amendments to the Articles of Association and procedural rules will also be considered, potentially impacting company governance and strategic operations.

Metallurgical Corporation of China Ltd. Proposes Auditor Change
May 28, 2025

Metallurgical Corporation of China Ltd. has announced a proposed change of its auditor and internal control auditor, deciding not to re-appoint Ernst & Young Hua Ming LLP. Instead, the company plans to appoint Deloitte Touche Tohmatsu Certified Public Accountants LLP for the year 2025. This decision, recommended by the Finance and Audit Committee, is based on Deloitte’s audit experience, industry knowledge, and technical expertise, aiming to maintain audit quality and serve the interests of the company and its shareholders.

Metallurgical Corporation of China Ltd. Signs New Framework Agreement with China Minmetals
May 28, 2025

Metallurgical Corporation of China Ltd. has signed a New Framework Agreement with China Minmetals, subject to shareholder approval, to continue their transactions from January 2026 to December 2026. This agreement is expected to maintain the company’s strategic partnership with China Minmetals, potentially strengthening its industry position and ensuring continued collaboration in the metallurgical sector.

Metallurgical Corporation of China Ltd. Reports Decline in Contract Value for Early 2025
May 15, 2025

Metallurgical Corporation of China Ltd. announced a significant decrease in the value of newly signed contracts from January to April 2025, totaling RMB308.40 billion, which is a 24.9% drop compared to the same period last year. This decline includes a 7.7% decrease in overseas contracts. Despite the downturn, the company secured major contracts in April, such as the Comprehensive Development Project in Zhengzhou and the EPC contract for the Shantytown Renovation Project in Weicheng District, indicating ongoing engagement in substantial engineering projects.

Metallurgical Corporation of China Ltd. Proposes Governance Amendments
Apr 29, 2025

Metallurgical Corporation of China Ltd. has announced proposed amendments to its Articles of Association, the Rules of Procedure for Shareholders’ Meetings, and the Rules of Procedure for Board Meetings. These changes, driven by the new Company Law and regulatory requirements, include the abolishment of the Supervisory Committee, with its functions being transferred to the Audit Committee. This strategic move aims to streamline governance and align with state regulations, potentially impacting the company’s operational efficiency and governance structure.

Metallurgical Corporation of China Ltd. Releases 2025 Q1 Report
Apr 29, 2025

Metallurgical Corporation of China Ltd. has released its unaudited first quarterly report for 2025, prepared under Chinese Accounting Standards. The company assures stakeholders of the report’s accuracy and completeness, with senior management taking responsibility for its contents. This announcement is part of the company’s compliance with Hong Kong Stock Exchange regulations, reflecting its commitment to transparency and regulatory adherence.

Metallurgical Corporation of China Reports Decline in Q1 2025 Contracts
Apr 29, 2025

Metallurgical Corporation of China Ltd. announced a significant decrease in the value of newly-signed contracts for the first quarter of 2025, totaling RMB230.66 billion, which is a 27.2% decline year-on-year. The company experienced a notable drop in overseas contracts by 35.7%, with housing construction works seeing the largest decrease at 42.4%. Despite the downturn, the company reported no stalled major projects as of the end of March 2025, indicating stability in ongoing operations.

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 15, 2025