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1208

MMG SEHK:1208 Stock Report

Last Price

HK$2.39

Market Cap

HK$20.9b

7D

4.8%

1Y

-35.4%

Updated

15 Aug, 2022

Data

Company Financials +
1208 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

1208 Stock Overview

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, molybdenum, cobalt, and lead deposits in Australia and internationally.

MMG Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MMG
Historical stock prices
Current Share PriceHK$2.39
52 Week HighHK$4.32
52 Week LowHK$2.12
Beta2.74
1 Month Change-0.83%
3 Month Change-27.58%
1 Year Change-35.41%
3 Year Change27.81%
5 Year Change-33.79%
Change since IPO-77.82%

Recent News & Updates

Jul 25
We Like These Underlying Return On Capital Trends At MMG (HKG:1208)

We Like These Underlying Return On Capital Trends At MMG (HKG:1208)

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...

Shareholder Returns

1208HK Metals and MiningHK Market
7D4.8%4.6%0.3%
1Y-35.4%-32.2%-21.6%

Return vs Industry: 1208 underperformed the Hong Kong Metals and Mining industry which returned -32.2% over the past year.

Return vs Market: 1208 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 1208's price volatile compared to industry and market?
1208 volatility
1208 Average Weekly Movement7.8%
Metals and Mining Industry Average Movement6.1%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1208 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1208's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19884,238Liangang Lihttps://www.mmg.com

MMG Limited, an investment holding company, engages in the exploration, development, and mining of copper, zinc, gold, silver, molybdenum, cobalt, and lead deposits in Australia and internationally. It operates through Las Bambas, Kinsevere, Dugald River, Rosebery, and Other segments. The company holds a 62.5% interest in the Las Bambas open-pit copper and molybdenum mine located in Cotabambas, Apurimac region of Peru; and 100% interest in the Kinsevere open-pit copper mine in the Haut-Katanga province of the Democratic Republic of the Congo.

MMG Fundamentals Summary

How do MMG's earnings and revenue compare to its market cap?
1208 fundamental statistics
Market CapUS$2.67b
Earnings (TTM)US$667.10m
Revenue (TTM)US$4.26b

3.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1208 income statement (TTM)
RevenueUS$4.26b
Cost of RevenueUS$1.61b
Gross ProfitUS$2.64b
Other ExpensesUS$1.98b
EarningsUS$667.10m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)0.077
Gross Margin62.11%
Net Profit Margin15.68%
Debt/Equity Ratio160.3%

How did 1208 perform over the long term?

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

Valuation

Is 1208 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1208?

Other financial metrics that can be useful for relative valuation.

1208 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/Revenue2.3x
Enterprise Value/EBITDA3.8x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does 1208's PE Ratio compare to its peers?

1208 PE Ratio vs Peers
The above table shows the PE ratio for 1208 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.5x
1091 South Manganese Investment
7.3xn/aHK$3.3b
3833 Xinjiang Xinxin Mining Industry
4.5xn/aHK$2.7b
9936 Ximei Resources Holding
13.9xn/aHK$1.7b
3993 China Molybdenum
12.2x25.8%HK$126.0b
1208 MMG
3.9x1.5%HK$20.9b

Price-To-Earnings vs Peers: 1208 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (9.5x).


Price to Earnings Ratio vs Industry

How does 1208's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 1208 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the Hong Kong Metals and Mining industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is 1208'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.

1208 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.9x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: 1208 is good value based on its Price-To-Earnings Ratio (3.9x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).


Share Price vs Fair Value

What is the Fair Price of 1208 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1208 (HK$2.39) is trading below our estimate of fair value (HK$12.59)

Significantly Below Fair Value: 1208 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: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is MMG forecast to perform in the next 1 to 3 years based on estimates from 9 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


1.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1208's forecast earnings growth (1.5% per year) is below the savings rate (1.6%).

Earnings vs Market: 1208's earnings (1.5% per year) are forecast to grow slower than the Hong Kong market (16.8% per year).

High Growth Earnings: 1208's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1208's revenue (5% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 1208's revenue (5% 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 (17.8%).


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Past Performance

How has MMG performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1208 has high quality earnings.

Growing Profit Margin: 1208 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1208 has become profitable over the past 5 years, growing earnings by 29.6% per year.

Accelerating Growth: 1208 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1208 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (44.6%).


Return on Equity

High ROE: Whilst 1208's Return on Equity (23.43%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is MMG'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: 1208's short term assets ($2.2B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: 1208's short term assets ($2.2B) do not cover its long term liabilities ($7.5B).


Debt to Equity History and Analysis

Debt Level: 1208's net debt to equity ratio (128.4%) is considered high.

Reducing Debt: 1208's debt to equity ratio has reduced from 395.5% to 160.3% over the past 5 years.

Debt Coverage: 1208's debt is well covered by operating cash flow (40.5%).

Interest Coverage: 1208's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


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Dividend

What is MMG 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 1208's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1208'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 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.


Earnings Payout to Shareholders

Earnings Coverage: 1208 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 1208 has not reported any payouts.


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Management

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

5.5yrs

Average management tenure


CEO

Liangang Li (58 yo)

0.58

Tenure

US$4,000

Compensation

Mr. Liangang Li serves as an Interim Chief Executive Officer and Executive Director at MMG Limited since January 5, 2022. He serves as President and Chairman at Minmetals Aluminium Co., Ltd. He serves as P...


Leadership Team

Experienced Management: 1208's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: 1208's board of directors are seasoned and experienced ( 10.9 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 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
  • Implied Market Cap: HK$20.908b
  • Shares outstanding: 8.64b
  • Website: https://www.mmg.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 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.