Shandong Gold Mining Co., Ltd. Class H (1787) AI Stock Analysis

• Market Cap: HK$265.67B
• Dividend Yield: 0.93%
• Average Volume (3M): 24.23M
• Price to Earnings (P/E): 73.2
• Beta (1Y): 0.40
• Revenue Growth: 36.74%
• EPS Growth: 36.49%
• Country: HK
• Employees: 17,439
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.25
• Shares Outstanding: 995,486,200
• 10 Day Avg. Volume: 30,297,405
• 30 Day Avg. Volume: 24,228,997
• PEG Ratio: 0.70
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -9.39
• 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$45.70
• Price Target Upside: 3.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$45.00 ▲(1.67% Upside)

The score is mainly constrained by moderate financial quality—higher leverage and inconsistent/negative free cash flow despite improved profitability—while strong technical trend signals provide support. Valuation is a notable headwind due to the very high P/E and low dividend yield.

Positive Factors

Vertical integration across the value chain

Owning upstream mining plus downstream processing/refining strengthens control over recovery, quality and timing of sales, enabling higher capture of processing margins and reduced third-party dependency. This structural integration supports durable margin resilience and strategic optionality.

Improving operating and gross margins

Sustained improvement in EBIT and stable gross margins indicate better cost control and operating leverage, enhancing enduring earnings power. For a mining business, higher structural margins improve cash generation capacity across commodity cycles and support reinvestment or debt reduction.

Positive operating cash flow trend

A clear uptick in operating cash flow provides a more stable foundation for funding operations and capital programs without reliance on external financing. Over months this boosts resilience to price swings and supports strategic choices like exploration, mine development, or selective deleveraging.

Negative Factors

Rising leverage increases financial sensitivity

A jump in debt-to-equity materially raises interest and refinancing exposure, limiting financial flexibility. In a cyclical commodity business this heightens vulnerability to downturns, constrains capital allocation choices, and increases the risk that cyclical revenue dips impair solvency or growth plans.

Inconsistent and negative free cash flow

Negative or inconsistent FCF despite positive operating cash flow signals high reinvestment needs or working capital strain, limiting discretionary uses of cash. Over the medium term this can curtail dividends, delay debt paydown, or force external financing during adverse commodity cycles.

Revenue volatility and recent decline

Irregular top-line trends reduce predictability of earnings and cash flow, complicating capital planning and reserve replacement strategies. For a mining firm, volatile revenue magnifies the impact of grade, production and price swings, making long-term investment and debt servicing riskier.

Shandong Gold Mining Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shandong Gold Mining Co., Ltd. engages in the exploration, mining, processing, smelting, and selling of gold and silver ores in the People's Republic of China. The company operates through Gold Mining, Gold Refining, and Investment Management segments. It is involved in refining, processing, production, and sales of gold products; production and sales of specialized equipment for gold mines, and construction and decoration materials; investing in equity funds; trading of gold bullion; and provision of brokerage services for trading of futures contracts, as well as production of gold bullions, investment gold bars, and silver ingots. The company also engages in the asset and investment management activities. Shandong Gold Mining Co., Ltd. was incorporated in 2000 and is headquartered in Jinan, the People's Republic of China.

How the Company Makes Money

Shandong Gold Mining Co., Ltd. generates revenue primarily through the exploration, extraction, and sale of gold. The company owns and operates several gold mines, which are the core sources of its raw gold products. Once extracted, the gold is processed and refined into bullion and other forms, which are then sold to various customers, including jewelry manufacturers, financial institutions, and other industrial users. In addition to mining and selling gold, the company also earns revenue through the sale of investment-grade gold products and, to a lesser extent, by providing mining-related services. Strategic partnerships and joint ventures with other mining companies and entities also play a role in enhancing its operational capabilities and market reach.

Shandong Gold Mining Co., Ltd. Class H Financial Statement Overview

Summary

Income statement trends are improving (steady positive net margin in 2022–2024 and higher EBIT margin into 2024), but overall financial quality is held back by a more leveraged balance sheet (debt-to-equity rising to ~1.51) and weak cash conversion with inconsistent/negative free cash flow (negative in 2024). Revenue volatility further reduces predictability.

Income Statement

Profitability has improved materially versus earlier years, with net margin positive and fairly steady in 2022–2024 (about 2.5%–3.9%), and operating profitability also firmer (EBIT margin ~6.1% in 2022 to ~9.4% in 2024). Gross margin is stable around ~16.5% in 2023–2024, supporting earnings quality. The key drawback is volatility in the top line: revenue swung from strong growth in 2022 to modest growth in 2023, then declined in 2024, indicating a less predictable operating backdrop.

Balance Sheet

The balance sheet has become more leveraged: debt-to-equity rose from ~0.64 (2022) to ~1.51 (2023–2024) as total debt increased substantially. While equity is sizable and returns on equity improved to ~7%–8% in 2023–2024 (from ~3.8% in 2022 and negative in 2021), the higher leverage increases sensitivity to commodity cycles and financing conditions.

Cash Flow

Operating cash flow is positive and improved significantly in 2024 versus prior years, which is a clear strength. However, free cash flow is inconsistent and was negative in 2024, and free cash flow has often trailed net income (negative free cash flow to net income across multiple years). This pattern suggests heavier reinvestment and/or working-capital demands that can constrain financial flexibility despite reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.51B	82.52B	59.28B	50.31B	33.93B	63.66B
Gross Profit	17.05B	13.62B	9.84B	7.09B	3.58B	7.85B
EBITDA	10.45B	12.73B	9.13B	6.29B	2.52B	6.47B
Net Income	4.38B	2.95B	2.33B	1.25B	―	2.02B
Balance Sheet
Total Assets	166.02B	160.66B	134.60B	90.72B	78.31B	63.86B
Cash, Cash Equivalents and Short-Term Investments	15.47B	14.83B	14.13B	12.59B	7.69B	6.35B
Total Debt	56.46B	57.00B	50.19B	20.95B	12.87B	10.06B
Total Liabilities	104.78B	102.09B	81.34B	54.03B	46.52B	32.21B
Stockholders Equity	42.27B	37.80B	33.08B	32.88B	29.22B	28.76B
Cash Flow
Free Cash Flow	-2.39B	-6.76B	-2.33B	-1.24B	-1.73B	1.04B
Operating Cash Flow	10.50B	13.34B	6.85B	2.97B	1.82B	5.81B
Investing Cash Flow	-16.91B	-22.80B	-20.62B	-5.25B	-2.61B	-8.04B
Financing Cash Flow	1.92B	11.00B	14.44B	5.46B	2.14B	2.28B

Shandong Gold Mining Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1787, the sentiment is Positive. The current price of 44.26 is above the 20-day moving average (MA) of 43.30, above the 50-day MA of 38.08, and above the 200-day MA of 31.27, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1787.

Shandong Gold Mining Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6693	78 Outperform	HK$80.05B	24.17	27.28%	0.54%	―	―
2899	74 Outperform	$1.18T	22.57	29.60%	1.55%	9.69%	54.43%
6181	69 Neutral	HK$137.51B	38.75	59.03%	2.51%	226.65%	278.96%
1818	68 Neutral	HK$128.23B	49.53	15.17%	0.16%	44.37%	125.87%
3330	67 Neutral	HK$29.88B	22.29	35.84%	1.40%	70.92%	249.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1787	55 Neutral	HK$265.67B	73.23	―	0.93%	36.74%	36.49%

Shandong Gold Mining Co., Ltd. Class H Corporate Events

Shandong Gold Forecasts Up to 71% Profit Jump for 2025 on Efficiency Gains and Strong Gold Prices

Shandong Gold Mining Co., Ltd. expects a sharp rise in profitability for 2025, forecasting net profit attributable to shareholders of RMB4.6 billion to RMB4.9 billion, up 56% to 66% from the previous year, and RMB4.8 billion to RMB5.1 billion after excluding non-recurring items, a projected increase of 60% to 71%. The company attributes the profit surge to strategic optimization of its production layout, enhanced mine exploration and project construction, increased investment in intelligent systems, and a shift from outsourced to self-operated mining, all against a backdrop of rising gold prices; management stresses that these measures are designed not only to capture current high gold prices but also to underpin longer-term, sustainable and high-quality growth through the 15th Five-Year Plan period.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$45.70 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Mining Announces Resignation of Independent Non-Executive Director

Shandong Gold Mining Co., Ltd. has announced the resignation of independent non-executive director Zhan Kai, who is stepping down from the board and from multiple key board committees, including strategy, sustainability, audit, nomination and remuneration, in order to devote more time to personal matters. Because his departure would temporarily reduce the proportion of independent directors on the board below the regulatory one-third threshold, his resignation will only take effect once a new independent non-executive director is appointed or the independent director ratio is otherwise restored, during which time he will continue to perform his duties, with the company pledging to expedite the election process and noting that he holds no shares, has no outstanding commitments, and has no disagreement with the board.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Shareholders Approve Competition Undertakings and Group Guarantees at EGM

Shandong Gold Mining Co., Ltd. reported that shareholders approved all ordinary resolutions at its fifth extraordinary general meeting of 2025, including measures for Shandong Gold Group and Shandong Gold Non-Ferrous Metal Mine Group to further implement undertakings aimed at avoiding horizontal competition within the group. Investors also backed an estimated guarantee amount to be provided by the company’s controlling subsidiary, Shanjin International, to its own subsidiaries, a step that formalises intra-group financial support, clarifies governance arrangements, and may help reduce related-party competition risks while facilitating funding flexibility for the group’s overseas and downstream operations.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Mining Announces Supplemental Notice for 2025 EGM

Shandong Gold Mining Co., Ltd. has announced a supplemental notice for its 2025 fifth extraordinary general meeting (EGM), scheduled for December 24, 2025. The meeting will address an additional resolution concerning the estimated guarantee amount provided by Shanjin International, a controlling subsidiary, to its subsidiaries. This resolution is expected to impact the company’s financial strategies and stakeholder interests, highlighting its ongoing efforts to manage subsidiary operations effectively.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Mining to Discuss Anti-Competition Measures at Upcoming EGM

Shandong Gold Mining Co., Ltd. has announced the convening of its fifth extraordinary general meeting in December 2025 to discuss and approve a resolution aimed at further implementing undertakings to avoid horizontal competition. This move is expected to strengthen the company’s market position by ensuring compliance with competitive practices, potentially impacting stakeholders positively by aligning with industry standards.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Mining Faces RMB738 Million Tax Payment

Shandong Gold Mining Co., Ltd. announced that its wholly-owned subsidiary, Laizhou Company, must make a supplementary payment of RMB738 million in taxes and late fees due to the free transfer of exploration rights by its former subsidiaries, which did not qualify for special tax treatment. This payment will not affect the company’s current net profit due to its recording as a deferred income tax asset, though the late fees will impact the net profit for 2025. The company assures that this will not significantly impact its operations and is committed to improving tax management to protect shareholder interests.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.

Shandong Gold Mining Co., Ltd. Advances Strategy to Mitigate Horizontal Competition

Shandong Gold Mining Co., Ltd. announced the further implementation of undertakings by its controlling shareholder to avoid horizontal competition. This involves consolidating business assets and ensuring that any potential competing businesses are either integrated into Shandong Gold or sold to third parties. The resolution, approved by the Board, aims to protect the interests of the company and its shareholders by strategically managing its resources and market presence, with a focus on enhancing operational efficiency and market competitiveness.

The most recent analyst rating on (HK:1787) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on Shandong Gold Mining Co., Ltd. Class H stock, see the HK:1787 Stock Forecast page.