China Nonferrous Mining Corporation Limited

SEHK:1258 Stock Report

Market Cap: HK$19.4b

China Nonferrous Mining Valuation

Is 1258 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1258 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1258 (HK$4.98) is trading below our estimate of fair value (HK$24.28)

Significantly Below Fair Value: 1258 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1258?

Key metric: As 1258 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1258. This is calculated by dividing 1258's market cap by their current earnings.
What is 1258's PE Ratio?
PE Ratio8x
EarningsUS$311.05m
Market CapUS$2.50b

Price to Earnings Ratio vs Peers

How does 1258's PE Ratio compare to its peers?

The above table shows the PE ratio for 1258 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.5x
2362 Jinchuan Group International Resources
80.4xn/aHK$6.4b
358 Jiangxi Copper
6.1x-0.6%HK$65.9b
639 Shougang Fushan Resources Group
9x-4.8%HK$13.5b
1208 MMG
46.3x63.1%HK$32.0b
1258 China Nonferrous Mining
8x16.9%HK$19.4b

Price-To-Earnings vs Peers: 1258 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does 1258's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6890 KangLi International Holdings
1.5xn/aUS$26.09m
No more companies available in this PE range
1258 8.0xIndustry Avg. 9.4xNo. of Companies4PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1258 is good value based on its Price-To-Earnings Ratio (8x) compared to the Hong Kong Metals and Mining industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is 1258'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.

1258 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio11.5x

Price-To-Earnings vs Fair Ratio: 1258 is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (11.5x).

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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