SEHK:1208

Stock Analysis Report

Executive Summary

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, nickel, and lead deposits worldwide.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has MMG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1208's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.2%

1208

-6.2%

HK Metals and Mining

-3.3%

HK Market


1 Year Return

-56.1%

1208

-19.2%

HK Metals and Mining

-9.6%

HK Market

Return vs Industry: 1208 underperformed the Hong Kong Metals and Mining industry which returned -18.6% over the past year.

Return vs Market: 1208 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1208IndustryMarket
7 Day-6.2%-6.2%-3.3%
30 Day-11.2%-5.8%-3.8%
90 Day-6.2%4.3%-0.2%
1 Year-56.1%-56.1%-16.5%-19.2%-6.3%-9.6%
3 Year-46.0%-46.0%-14.2%-19.7%11.2%-0.05%
5 Year-17.7%-22.7%0.7%-9.9%12.7%-6.0%

Price Volatility Vs. Market

How volatile is MMG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MMG undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1208 (HK$1.67) is trading below our estimate of fair value (HK$16.08)

Significantly Below Fair Value: 1208 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1208 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 1208 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1208's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1208 is overvalued based on its PB Ratio (1.5x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is MMG forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

99.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1208 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1208 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1208's is expected to become profitable in the next 3 years.

Revenue vs Market: 1208's revenue (7.8% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 1208's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1208's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has MMG performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1208 is currently unprofitable.

Growing Profit Margin: 1208 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1208 is unprofitable, but has reduced losses over the past 5 years at a rate of 21.6% per year.

Accelerating Growth: Unable to compare 1208's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1208 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-25%).


Return on Equity

High ROE: 1208 has a negative Return on Equity (-4.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MMG's financial position?


Financial Position Analysis

Short Term Liabilities: 1208's short term assets ($1.1B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: 1208's short term assets ($1.1B) do not cover its long term liabilities ($8.7B).


Debt to Equity History and Analysis

Debt Level: 1208's debt to equity ratio (281.2%) is considered high.

Reducing Debt: 1208's debt to equity ratio has increased from 91.2% to 281.2% over the past 5 years.


Balance Sheet

Inventory Level: 1208 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1208's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 1208 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1208 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.4% per year.


Next Steps

Dividend

What is MMG's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage4.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1208's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1208's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1208's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1208's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1208 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1208's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Xiaoyu Gao (49yo)

1.5yrs

Tenure

US$1,388,000

Compensation

Mr.Geoffrey Gao, also known as Xiaoyu , is Chief Executive Officer and Executive Director of MMG Limited since August 1, 2018. He was Non-Executive Director of MMG Limited since April 1, 2011 until August  ...


CEO Compensation Analysis

Compensation vs Market: Xiaoyu's total compensation ($USD1.39M) is above average for companies of similar size in the Hong Kong market ($USD558.54K).

Compensation vs Earnings: Xiaoyu's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Gao
CEO & Executive Director1.5yrsUS$1.39mno data
Ross Carroll
Chief Financial Officer4.2yrsno datano data
Blake Ericksen
Head of Investor Relations0yrsno datano data
Nick Myers
General Counsel0yrsno datano data
Troy Hey
Executive General Manager of Stakeholder Relations & People1.1yrsno datano data
Suet Leung
Company Secretary18.7yrsno datano data
Andrew Michelmore
Executive3yrsUS$12.28mno data
Jianxian Wei
Executive General Manager of Operations – Americas0.5yrsno datano data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: 1208's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Gao
CEO & Executive Director1.5yrsUS$1.39mno data
Peter Cassidy
Independent Non-Executive Director9.2yrsUS$169.00kno data
Wenqing Guo
Chairman of the Board3yrsno datano data
Jiqing Xu
Non-Executive Director10.8yrsUS$1.61mno data
Jerry Jiao
Non-Executive Director9.2yrsUS$2.73mno data
Cheuk Yan Leung
Independent Non-Executive Director7.6yrsUS$160.00kno data
Ka Keung Chan
Independent Non-Executive Director0.2yrsno datano data
Shuqiang Zhang
Non-Executive Director3yrsUS$152.00kno data

8.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 1208's board of directors are considered experienced (8.2 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

MMG Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MMG Limited
  • Ticker: 1208
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: HK$13.693b
  • Shares outstanding: 8.05b
  • Website: https://www.mmg.com

Number of Employees


Location

  • MMG Limited
  • Level 23
  • 28 Freshwater Place
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1208SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1994
OMS1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1994
MMLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1994
1208SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994
1208SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1994

Biography

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, nickel, and lead deposits worldwide. It operates through Las Bambas, Kinsevere, Dugald River, Rosebery, and Other segments. The company operates the Las Bambas open-pit copper and molybdenum mine located in Cotabambas, Apurimac region of Peru; and the Kinsevere open-pit copper mine in the Katanga province of the Democratic Republic of the Congo. It also operates the Dugald River underground zinc mine located near Cloncurry in North West Queensland; and the Rosebery underground polymetallic base metal mine located on Tasmania’s west coast. The company was formerly known as Minmetals Resources Limited and changed its name to MMG Limited in September 2012. MMG Limited was incorporated in 1988 and is headquartered in Southbank, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:38
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.