SEHK:1258

Stock Analysis Report

China Nonferrous Mining

Executive Summary

China Nonferrous Mining Corporation Limited, an investment holding company, engages in the exploration, mining, ore processing, leaching, smelting, and sale of copper cathodes, blister copper, copper anodes, and sulfuric acid.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has China Nonferrous Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

1258

-1.8%

HK Metals and Mining

0.3%

HK Market


1 Year Return

-22.3%

1258

-14.3%

HK Metals and Mining

1.3%

HK Market

Return vs Industry: 1258 underperformed the Hong Kong Metals and Mining industry which returned -14.3% over the past year.

Return vs Market: 1258 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1258IndustryMarket
7 Day-2.7%-1.8%0.3%
30 Day-0.7%-6.3%0.5%
90 Day-5.2%-10.6%-4.6%
1 Year-18.8%-22.3%-11.3%-14.3%4.9%1.3%
3 Year53.0%43.1%-4.3%-6.7%15.3%3.7%
5 Year-22.0%-27.7%-5.1%-15.8%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Nonferrous Mining undervalued compared to its fair value and its price relative to the market?

5.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1258 (HK$1.46) is trading above our estimate of fair value (HK$0.85)

Significantly Below Fair Value: 1258 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1258 is good value based on its PE Ratio (5.3x) compared to the Metals and Mining industry average (10.2x).

PE vs Market: 1258 is good value based on its PE Ratio (5.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1258's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1258 is good value based on its PB Ratio (0.7x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is China Nonferrous Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1258's forecast earnings growth (2.6% per year) is above the savings rate (2%).

Earnings vs Market: 1258's earnings (2.6% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1258's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1258's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1258's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1258's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Nonferrous Mining performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1258's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: 1258's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1258 had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-24.5%).


Return on Equity

High ROE: 1258's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: 1258's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 1258's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Nonferrous Mining's financial position?


Financial Position Analysis

Short Term Liabilities: 1258's short term assets ($1.5B) exceeds its short term liabilities ($842.0M)

Long Term Liabilities: 1258's short term assets (1.5B) exceeds its long term liabilities (853.9M)


Debt to Equity History and Analysis

Debt Level: 1258's debt to equity ratio (88.9%) is considered high

Reducing Debt: 1258's debt to equity ratio has reduced from 91.8% to 88.9% over the past 5 years.

Debt Coverage: 1258's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: 1258's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet

Inventory Level: 1258 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1258's debt is covered by short term assets (assets are 1.210940x debt).


Next Steps

Dividend

What is China Nonferrous Mining's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%6.2%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1258's dividend (4.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1258's dividend (4.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1258 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1258's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), 1258's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of China Nonferrous Mining's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Lin Zhang (56yo)

2.4yrs

Tenure

US$117,000

Compensation

Mr. Lin Zhang has been President and Executive Director of China Nonferrous Mining Corporation Limited since May 19, 2017. Mr. Zhang served as the Deputy Manager and the General Manager of Daye Metal. Mr.  ...


CEO Compensation Analysis

Compensation vs. Market: Lin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Lin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1258's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

56yo

Average Age

Experienced Board: 1258's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Tongzhou Wang (53yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Lin Zhang (56yo)

    President & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$117.00k
  • Aibin Hu (50yo)

    Chief Compliance Officer & Joint Company Secretary

    • Tenure: 0yrs
  • Man Wong (44yo)

    Joint Company Secretary

    • Tenure: 1.5yrs
  • Chunlai Wang (58yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$151.00k
  • Kaishou Xie (63yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$43.00k
  • Xinghua Liu (50yo)

    Financial Director

    • Tenure: 3.8yrs
  • Xiaowei Wang (56yo)

    Executive Director

    • Tenure: 1.2yrs

Board Members

  • Chuanyao Sun (74yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$35.00k
  • Tongzhou Wang (53yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Huan Fei Guan (62yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: US$35.00k
  • Lin Zhang (56yo)

    President & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$117.00k
  • Chunlai Wang (58yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$151.00k
  • Kaishou Xie (63yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$43.00k
  • Jingwei Liu (50yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: US$35.00k
  • Jinjun Zhang (50yo)

    Vice Chairman of the Board

    • Tenure: 0.6yrs
  • Xiaowei Wang (56yo)

    Executive Director

    • Tenure: 1.2yrs

Company Information

China Nonferrous Mining Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Nonferrous Mining Corporation Limited
  • Ticker: 1258
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: HK$5.094b
  • Shares outstanding: 3.49b
  • Website: https://www.cnmcl.net

Number of Employees


Location

  • China Nonferrous Mining Corporation Limited
  • CNMC Building
  • No.10, Anding Road
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1258SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2012
3N4BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJun 2012

Biography

China Nonferrous Mining Corporation Limited, an investment holding company, engages in the exploration, mining, ore processing, leaching, smelting, and sale of copper cathodes, blister copper, copper anode ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:46
End of Day Share Price2019/10/22 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.