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

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

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HK

Metallurgical Corporation of China Ltd. Class H

(Frankfurt:1618)

Rating:80Outperform
Price Target:
HK$2.00
▲(21.21%Upside)
The stock exhibits solid financial performance with stable revenue and profit margins, supported by sound cash flow management. Technical indicators suggest a stable market position with bullish momentum. The stock's valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for investors. The lack of recent earnings call data and corporate events does not detract from its overall strong position.

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., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company's Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land. The company's Equipment Manufacturing segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company was founded in 2008 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyThe company generates revenue through several key streams, including engineering contracting, resources development, equipment manufacturing, and property development. Engineering contracting, particularly in metallurgical construction, forms a significant portion of MCC's income, as the company undertakes large-scale infrastructure projects both domestically and internationally. Resources development includes the extraction and sale of non-ferrous metals, which adds to its revenue. Equipment manufacturing provides specialized machinery and technology solutions, while property development involves the construction and sale of residential and commercial properties. Additionally, strategic partnerships with other enterprises and government contracts further bolster MCC's financial performance.

Metallurgical Corporation of China Ltd. Class H Financial Statement Overview

Summary
The company shows strong financial health with consistent revenue growth and stable profit margins. However, there are concerns over increasing debt and fluctuating operational efficiency.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue524.35B552.02B633.87B592.67B500.57B400.11B
Gross Profit52.01B53.48B61.41B57.15B53.14B45.43B
EBITDA11.46B17.01B20.34B21.88B19.61B17.96B
Net Income5.67B6.75B8.67B10.28B11.61B7.86B
Balance Sheet
Total Assets585.38B808.02B661.60B585.38B543.47B506.39B
Cash, Cash Equivalents and Short-Term Investments45.66B52.56B44.44B45.66B41.83B55.35B
Total Debt62.88B78.59B66.19B62.88B60.54B68.15B
Total Liabilities423.48B625.68B493.61B423.48B392.08B366.04B
Stockholders Equity121.11B153.04B145.48B121.11B107.49B97.89B
Cash Flow
Free Cash Flow5.75B985.05M1.30B13.84B14.09B24.29B
Operating Cash Flow0.007.85B5.89B18.15B17.64B28.03B
Investing Cash Flow-10.93B-9.58B-6.72B-6.56B-12.57B-12.29B
Financing Cash Flow462.82M11.06B1.16B-9.67B-16.24B-5.31B

Metallurgical Corporation of China Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.65
Price Trends
50DMA
1.54
Positive
100DMA
1.56
Positive
200DMA
1.57
Positive
Market Momentum
MACD
0.03
Negative
RSI
65.49
Neutral
STOCH
78.06
Neutral
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 1.65 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.54, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.06 is Neutral, 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€63.61B5.585.56%4.79%-19.10%-30.15%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
$7.99B6.5914.62%4.67%
DE2E5
€6.86B4.268.19%5.49%
DE1NS
€2.87B8.747.81%7.29%
DE4AI
€1.50B29.117.03%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.65
0.10
6.73%
CCOHF
China State Construction International Holdings
1.57
0.73
86.90%
DE:2E5
China Energy Engineering Corp. Ltd. Class H
0.11
0.02
22.22%
DE:1NS
SINOPEC Engineering (Group) Co., Ltd. Class H
0.63
0.09
16.67%
DE:4AI
China Aluminum International Engineering Corporation Limited Class H
0.23
0.04
21.05%

Metallurgical Corporation of China Ltd. Class H Corporate Events

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.

Metallurgical Corporation of China Ltd. Announces Key Management Change
Apr 16, 2025

Metallurgical Corporation of China Ltd. announced a change in its senior management with the resignation of Mr. Wang Zhen as the Joint Company Secretary and Authorized Representative. Mr. Chang Qi has been appointed to the position, bringing extensive experience from his previous roles in various Chinese metallurgical and investment companies. This transition is expected to maintain the company’s stability and compliance with regulatory requirements, ensuring continued effective governance and operations.

Metallurgical Corporation of China Announces Board Meeting for Quarterly Results
Apr 15, 2025

Metallurgical Corporation of China Ltd. has announced a forthcoming board meeting scheduled for April 29, 2025, to review and approve the company’s first quarterly results for the period ending March 31, 2025. This announcement indicates the company’s commitment to transparency and timely disclosure, which may impact investor confidence and market perception.

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: Jun 24, 2025