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1091

South Manganese Investment SEHK:1091 Stock Report

Last Price

HK$0.95

Market Cap

HK$3.3b

7D

5.6%

1Y

-45.7%

Updated

10 Aug, 2022

Data

Company Financials
1091 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

1091 Stock Overview

South Manganese Investment Limited, an investment holding company, engages in manganese mining, ore processing, and downstream processing operations in Mainland China, the rest of Asia, Europe, and North America.

South Manganese Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for South Manganese Investment
Historical stock prices
Current Share PriceHK$0.95
52 Week HighHK$1.89
52 Week LowHK$0.69
Beta1.57
1 Month Change18.75%
3 Month Change21.80%
1 Year Change-45.71%
3 Year Change183.58%
5 Year Change63.79%
Change since IPO-67.47%

Recent News & Updates

Shareholder Returns

1091HK Metals and MiningHK Market
7D5.6%2.6%-0.6%
1Y-45.7%-32.4%-23.8%

Return vs Industry: 1091 underperformed the Hong Kong Metals and Mining industry which returned -31.2% over the past year.

Return vs Market: 1091 underperformed the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 1091's price volatile compared to industry and market?
1091 volatility
1091 Average Weekly Movement9.7%
Metals and Mining Industry Average Movement6.0%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 1091 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 1091's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
20057,235Weijian Lihttps://www.southmn.com

South Manganese Investment Limited, an investment holding company, engages in manganese mining, ore processing, and downstream processing operations in Mainland China, the rest of Asia, Europe, and North America. It operates through four segments: Manganese Mining, EMM and Alloying Materials Production, Battery Materials Production, and Other Business. The Manganese Mining segment mines and produces manganese products, including manganese concentrate, and natural discharging manganese powder and sand.

South Manganese Investment Fundamentals Summary

How do South Manganese Investment's earnings and revenue compare to its market cap?
1091 fundamental statistics
Market CapHK$3.26b
Earnings (TTM)HK$466.19m
Revenue (TTM)HK$12.83b

7.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1091 income statement (TTM)
RevenueHK$12.83b
Cost of RevenueHK$10.49b
Gross ProfitHK$2.34b
Other ExpensesHK$1.87b
EarningsHK$466.19m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 19, 2022

Earnings per share (EPS)0.14
Gross Margin18.23%
Net Profit Margin3.63%
Debt/Equity Ratio133.7%

How did 1091 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1091 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1091?

Other financial metrics that can be useful for relative valuation.

1091 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA3.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1091's PE Ratio compare to its peers?

1091 PE Ratio vs Peers
The above table shows the PE ratio for 1091 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.9x
3833 Xinjiang Xinxin Mining Industry
4.5xn/aHK$2.7b
9936 Ximei Resources Holding
14xn/aHK$1.7b
769 China Rare Earth Holdings
48.3xn/aHK$1.2b
2237 China Graphite Group
16.8xn/aHK$1.0b
1091 South Manganese Investment
7xn/aHK$3.3b

Price-To-Earnings vs Peers: 1091 is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does 1091's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 1091 is expensive based on its Price-To-Earnings Ratio (7x) compared to the Hong Kong Metals and Mining industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is 1091's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1091 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1091's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1091 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1091 (HK$0.95) is trading below our estimate of fair value (HK$6.06)

Significantly Below Fair Value: 1091 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is South Manganese Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.1%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as South Manganese Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine whether South Manganese Investment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • South Manganese Investment competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has South Manganese Investment performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1091 has a large one-off loss of HK$302.7M impacting its December 31 2021 financial results.

Growing Profit Margin: 1091 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1091 has become profitable over the past 5 years, growing earnings by -28.7% per year.

Accelerating Growth: 1091 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1091 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (45.1%).


Return on Equity

High ROE: 1091's Return on Equity (12.4%) is considered low.


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Financial Health

How is South Manganese Investment's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1091's short term assets (HK$5.9B) do not cover its short term liabilities (HK$7.1B).

Long Term Liabilities: 1091's short term assets (HK$5.9B) exceed its long term liabilities (HK$797.6M).


Debt to Equity History and Analysis

Debt Level: 1091's net debt to equity ratio (97%) is considered high.

Reducing Debt: 1091's debt to equity ratio has reduced from 134.5% to 133.7% over the past 5 years.

Debt Coverage: 1091's debt is well covered by operating cash flow (39.2%).

Interest Coverage: 1091's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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Dividend

What is South Manganese Investment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1091's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1091's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1091's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1091's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1091 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1091 has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Weijian Li (60 yo)

1.67yrs

Tenure

HK$15,020,000

Compensation

Mr. Weijian Li has been Executive Chairman and Chief Executive Officer of South Manganese Investment Limited (formerly known as CITIC Dameng Holdings Limited) since December 22, 2020. He has been Executive...


CEO Compensation Analysis

Compensation vs Market: Weijian's total compensation ($USD1.91M) is above average for companies of similar size in the Hong Kong market ($USD400.39K).

Compensation vs Earnings: Weijian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1091's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1091's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

South Manganese Investment Limited's employee growth, exchange listings and data sources


Key Information

  • Name: South Manganese Investment Limited
  • Ticker: 1091
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: HK$3.257b
  • Shares outstanding: 3.43b
  • Website: https://www.southmn.com

Number of Employees


Location

  • South Manganese Investment Limited
  • United Centre
  • Room A02
  • Admiralty
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.