SEHK:3993

Stock Analysis Report

Executive Summary

China Molybdenum Co., Ltd., together with its subsidiaries, engages in the mining, smelting, beneficiation, and deep processing of copper, cobalt, molybdenum, tungsten, niobium, phosphates, and other base and precious metals.


Snowflake Analysis

Limited growth with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3993's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

3993

-1.5%

HK Metals and Mining

1.1%

HK Market


1 Year Return

-37.4%

3993

-38.7%

HK Metals and Mining

-21.6%

HK Market

Return vs Industry: 3993 underperformed the Hong Kong Metals and Mining industry which returned -37.6% over the past year.

Return vs Market: 3993 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

3993IndustryMarket
7 Day2.3%-1.5%1.1%
30 Day-26.1%-21.9%-10.2%
90 Day-34.3%-32.1%-16.1%
1 Year-34.2%-37.4%-36.6%-38.7%-18.8%-21.6%
3 Year-12.5%-19.9%-33.8%-38.0%-3.1%-12.8%
5 Year-5.4%-18.1%-40.2%-46.0%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3993 (HK$2.17) is trading above our estimate of fair value (HK$1.37)

Significantly Below Fair Value: 3993 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3993 is poor value based on its PE Ratio (23.1x) compared to the Metals and Mining industry average (9.2x).

PE vs Market: 3993 is poor value based on its PE Ratio (23.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3993 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 3993 is overvalued based on its PB Ratio (1x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is China Molybdenum forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3993's forecast earnings growth (15.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 3993's earnings (15.3% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 3993's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3993's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 3993's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3993's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has China Molybdenum performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3993 has a large one-off gain of CN¥2.8B impacting its December 31 2019 financial results.

Growing Profit Margin: 3993's current net profit margins (2.7%) are lower than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: 3993's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: 3993's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3993 had negative earnings growth (-59.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-17.1%).


Return on Equity

High ROE: 3993's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is China Molybdenum's financial position?


Financial Position Analysis

Short Term Liabilities: 3993's short term assets (CN¥54.2B) exceed its short term liabilities (CN¥34.6B).

Long Term Liabilities: 3993's short term assets (CN¥54.2B) exceed its long term liabilities (CN¥32.8B).


Debt to Equity History and Analysis

Debt Level: 3993's debt to equity ratio (90.6%) is considered high.

Reducing Debt: 3993's debt to equity ratio has increased from 68.9% to 90.6% over the past 5 years.

Debt Coverage: 3993's debt is not well covered by operating cash flow (3.8%).

Interest Coverage: 3993's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet

Inventory Level: 3993 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3993's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3993's dividend (2.17%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 3993's dividend (2.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 3993's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3993's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), 3993's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3993's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Faben Li (55yo)

7.5s

Tenure

CN¥2,423,400

Compensation

Mr. Faben Li, Professor-level senior engineer, has been the Executive Director of China Molybdenum Co., Ltd. (the “Company”) since August 2006 and serves as its General Manager since October 24, 2012. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Faben's total compensation ($USD342.19K) is below average for companies of similar size in the Hong Kong market ($USD867.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chaochun Li
Chairman of the Board6.25yrsCN¥3.48m0.0073% CN¥5.7m
Faben Li
GM & Executive Director7.5yrsCN¥2.42m0.0049% CN¥3.8m
Yiming Wu
CFO & Deputy GM2.25yrsCN¥3.80mno data
Yuanbin Yue
Secretary to the Board & Joint Company Secretary3.08yrsCN¥2.70mno data
Meifeng Gu
Chief Accountant1.67yrsCN¥525.73kno data
Yi Zhang
Deputy General Manager of Administration & Procurement1.67yrsno datano data
Feng Xiao
General Counsel1.67yrsno datano data
Yan Qin
Director of Human Resources1.67yrsno datano data
Hongwei Zhang
Head of Accounting Departmentno datano datano data
Siu Pik Ho
Joint Company Secretary3.25yrsno datano data

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 3993's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chaochun Li
Chairman of the Board6.25yrsCN¥3.48m0.0073% CN¥5.7m
Faben Li
GM & Executive Director7.5yrsCN¥2.42m0.0049% CN¥3.8m
Zhenhao Zhang
Supervisor10.67yrsCN¥90.00k0.0049% CN¥3.8m
Yimin Guo
Non-Executive Vice Chairman1.08yrsno datano data
Honglin Yuan
Non-Executive Director6.42yrsCN¥90.00k0.0049% CN¥3.7m
Yunlei Cheng
Non-Executive Director4.83yrsCN¥90.00kno data
Youmin Kou
Chairman of the Board of Supervisors4.83yrsno datano data
Shuhua Li
Independent Non-Executive Director1.67yrsCN¥125.00kno data
Ye Yan
Independent Non-Executive Director1.67yrsCN¥125.00kno data
Yougui Wang
Independent Non-Executive Director1.67yrsCN¥125.00kno data

4.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 3993's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China Molybdenum Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Molybdenum Co., Ltd.
  • Ticker: 3993
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: HK$77.107b
  • Shares outstanding: 21.60b
  • Website: https://www.chinamoly.com

Number of Employees


Location

  • China Molybdenum Co., Ltd.
  • North of Yihe
  • Huamei Shan Road
  • Luoyang
  • Henan Province
  • 471500
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3993SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDApr 2007
D7NDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURApr 2007
CMCL.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDApr 2007
3993SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2007
3993SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2007
603993SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYOct 2012
603993XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYOct 2012

Biography

China Molybdenum Co., Ltd., together with its subsidiaries, engages in the mining, smelting, beneficiation, and deep processing of copper, cobalt, molybdenum, tungsten, niobium, phosphates, and other base and precious metals. The company provides molybdenum oxide, ferromolybdenum, molybdenum and tungsten concentrates, copper concentrate, electrolytic copper, cobalt hydroxide, ferroniobium, phosphate fertilizer, gold and silver, and sulfuric acid. It is also involved in the refining and sale of mineral products; sale of mineral products; purchase and sale of molybdenum and tungsten products; importing and exporting goods and technology; and hotel management, consulting, enterprise operating and management, asset management, logistics, and transportation businesses. The company has operations in China, Japan, Brazil, Switzerland, Finland, South Korea, South Africa, Zambia, Belgium, the United States, and internationally. China Molybdenum Co., Ltd. was founded in 2006 and is based in Luoyang, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.