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

• Market Cap: HK$64.75B
• Dividend Yield: 3.21%
• Average Volume (3M): 49.24M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.08
• Revenue Growth: -18.36%
• EPS Growth: -47.29%
• Country: HK
• Employees: 97,489
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 2,871,000,000
• 10 Day Avg. Volume: 95,052,304
• 30 Day Avg. Volume: 49,242,889
• PEG Ratio: -0.05
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.01
• P/FCF Ratio: 7.18
• 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: HK$3.11
• Price Target Upside: 27.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$2.50 ▲(2.04% Upside)

The company's strong financial performance is overshadowed by technical indicators suggesting bearish momentum. While the valuation is reasonable, the stock's current downtrend and increasing debt levels are significant risks.

Positive Factors

Stable Profit Margins

Stable profit margins suggest effective cost control and pricing strategies, supporting long-term profitability despite revenue fluctuations.

Strong Equity Position

A strong equity position provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Positive operating cash flow indicates the company's capability to fund operations and investments internally, reducing reliance on external financing.

Negative Factors

Increasing Debt Levels

Rising debt levels can increase financial risk and interest expenses, potentially limiting the company's ability to invest in future growth.

Revenue Decline

A decline in revenue may indicate challenges in market demand or competitive pressures, affecting the company's growth trajectory and market position.

Fluctuating Operational Efficiency

Volatile operational efficiency can lead to unpredictable earnings and may signal underlying issues in cost management or production processes.

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

Company Description

Metallurgical Corporation of China Ltd. Class H (1618) is a leading Chinese engineering and construction firm primarily engaged in the metallurgical industry, including the design, construction, and operation of metallurgical and mining projects. The company operates in various sectors such as infrastructure, environmental protection, and real estate, providing services ranging from project management to equipment manufacturing. Its core products include steelmaking technologies, mining equipment, and comprehensive engineering solutions for metallurgical projects.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by undertaking large-scale engineering and construction projects for the metallurgical and mining sectors. Key revenue sources include contracts for the construction of steel plants, mining operations, and related infrastructure. Metallurgical Corporation of China also earns income from the sale of metallurgical equipment and technology services. Additionally, the company may benefit from strategic partnerships with state-owned enterprises and investment in joint ventures, enhancing its project capabilities and expanding its market reach. Factors such as government infrastructure spending and demand for raw materials also play a significant role in driving the company's earnings.

Metallurgical Corporation of China Ltd. Class H Financial Statement Overview

Summary

The company shows robust financial health with consistent revenue growth and stable profit margins. However, fluctuating operational efficiency and increasing debt are concerns.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	483.54B	552.02B	633.87B	592.67B	500.57B	400.11B
Gross Profit	50.54B	53.48B	61.41B	57.15B	53.14B	45.43B
EBITDA	11.32B	17.01B	20.34B	21.88B	19.61B	17.96B
Net Income	3.97B	6.75B	8.67B	10.28B	11.61B	7.86B
Balance Sheet
Total Assets	954.19B	808.02B	661.60B	585.38B	543.47B	506.39B
Cash, Cash Equivalents and Short-Term Investments	56.32B	52.56B	44.44B	45.66B	41.83B	55.35B
Total Debt	220.36B	78.59B	66.19B	62.88B	60.54B	68.15B
Total Liabilities	807.48B	625.68B	493.61B	423.48B	392.08B	366.04B
Stockholders Equity	114.12B	153.04B	145.48B	121.11B	107.49B	97.89B
Cash Flow
Free Cash Flow	11.55B	985.05M	1.30B	13.84B	14.09B	24.29B
Operating Cash Flow	-19.53B	7.85B	5.89B	18.15B	17.64B	28.03B
Investing Cash Flow	-8.00B	-9.58B	-6.72B	-6.56B	-12.57B	-12.29B
Financing Cash Flow	6.60B	11.06B	1.16B	-9.67B	-16.24B	-5.31B

Metallurgical Corporation of China Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.45
• 50DMA: Negative
• 100DMA: Negative
• 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:1618, the sentiment is Negative. The current price of 2.45 is above the 20-day moving average (MA) of 2.03, above the 50-day MA of 2.25, and above the 200-day MA of 1.91, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1618.

Metallurgical Corporation of China Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2386	78 Outperform	HK$33.13B	12.14	8.27%	5.31%	11.89%	8.49%
3311	67 Neutral	HK$49.34B	5.01	13.70%	6.69%	-5.14%	-4.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1618	62 Neutral	HK$64.75B	9.45	3.80%	3.21%	-18.36%	-47.29%
3996	60 Neutral	HK$66.97B	5.25	7.78%	3.90%	11.49%	-7.01%
2068	41 Neutral	HK$17.17B	88.82	3.35%	―	-1.75%	―

Metallurgical Corporation of China Ltd. Class H Corporate Events

Metallurgical Corporation of China Ltd. Reports Contract Performance for 2025

Metallurgical Corporation of China Ltd. announced a total of RMB845.07 billion in newly signed contracts from January to October 2025, marking an 11.8% decrease compared to the previous year. However, the company saw a 7.3% increase in overseas contracts, totaling RMB71.16 billion. Notable contracts include significant projects in urban renovation and mining operations, highlighting the company’s continued focus on large-scale engineering and construction endeavors.

Metallurgical Corporation of China Reports Q3 2025 Contract Decline

Metallurgical Corporation of China Ltd. reported a decline in the value of newly-signed contracts for the first three quarters of 2025, with a total of RMB760.67 billion, marking a 14.7% decrease year-on-year. Despite the overall downturn, the company maintained steady operations with no stalled major projects, indicating resilience in its business segments, particularly in metallurgical works and operation services, which saw a slight increase.

Metallurgical Corporation of China Ltd. Releases 2025 Q3 Report

Metallurgical Corporation of China Ltd. has released its unaudited third quarterly report for 2025, prepared according to Chinese Accounting Standards. The report assures stakeholders of the accuracy and completeness of the financial information provided, although it remains unaudited. This announcement highlights the company’s commitment to transparency and accountability, potentially reinforcing stakeholder confidence in its operational integrity.

Metallurgical Corporation of China Schedules Board Meeting for Quarterly Results

Metallurgical Corporation of China Ltd. has announced a board meeting scheduled for October 30, 2025, to discuss and approve the third quarterly results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

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

Metallurgical Corporation of China Ltd. reported a total value of RMB760.67 billion in newly signed contracts from January to September 2025, marking a 14.7% decrease compared to the previous year. However, the company’s overseas contracts saw a 10.1% increase, reaching RMB66.90 billion. Notable projects in September include significant engineering and construction contracts exceeding RMB1 billion, highlighting the company’s ongoing efforts to secure large-scale projects despite the overall decline in contract value.

Metallurgical Corporation of China Ltd. Reports 2025 Contract Performance

Metallurgical Corporation of China Ltd. announced a total of RMB679.57 billion in newly signed contracts from January to August 2025, marking an 18.2% decrease compared to the previous year. Despite the overall decline, the company saw an 8.9% increase in overseas contracts, totaling RMB64.22 billion. This shift highlights a strategic focus on expanding international operations, which could potentially strengthen the company’s global market position and offer new opportunities for stakeholders.