CMOC Group Ltd

CMOC Group Ltd maintains a balanced capital structure with a debt-to-equity ratio of 0.48, indicating moderate leverage relative to its equity base of 82.44 billion CNY. The company holds total assets of 200.93 billion CNY against total liabilities of 118.50 billion CNY, resulting in a current ratio of 1.55, which suggests adequate short-term liquidity to cover immediate obligations. Long-term debt stands at 39.32 billion CNY, while the company generated operating cash flow of 20.84 billion CNY and free cash flow of 15.87 billion CNY in the latest period. Despite positive cash generation, the risk assessment flags that net cash is negative after subtracting total debt, highlighting a reliance on debt financing for its asset base.

Profitability metrics demonstrate strong operational efficiency, with a return on equity (ROE) of 24.67% and a return on assets (ROA) of 10.12%. The company reported net income of 20.34 billion CNY on revenue of 206.68 billion CNY, yielding a gross profit of 46.55 billion CNY and operating income of 35.28 billion CNY. These returns suggest effective capital deployment and operational leverage within the mining cycle. The valuation snapshot reflects a price-to-earnings ratio of 14.76 and an EV/EBITDA of 9.61, positioning the stock at a moderate multiple relative to its earnings power. The price-to-book ratio of 3.64 indicates that the market values the company’s tangible assets at a premium, likely reflecting the quality of its mineral reserves and operational scale.

Revenue concentration is not explicitly detailed in segment or geographic breakdowns within the available data, but the company’s activity is centered on metals and mining. The absence of specific segment data limits the ability to assess diversification risks across different commodity lines or geographic regions. However, the significant revenue base of 206.68 billion CNY suggests a large-scale operation with substantial market presence. The company’s focus on mineral resources implies exposure to commodity price cycles, which can drive volatility in both revenue and profitability.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly trends, it is not possible to quantify revenue or net income growth rates. The current financial snapshot shows a robust profit base, but the lack of historical context prevents a definitive assessment of whether the company is in a growth, maturity, or decline phase. The capital expenditure of 7.58 billion CNY indicates ongoing investment in capacity or maintenance, which may support future revenue generation.

Risk factors include medium liquidity risk and low dilution risk. The key flag noting negative net cash after debt subtraction underscores the importance of maintaining strong cash flow generation to service debt obligations. The dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 17.46 billion, suggesting no significant pending equity issuances or convertible instruments that would erode shareholder value. The company’s reliance on debt financing introduces interest rate and refinancing risks, particularly in a rising rate environment.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 25.53 CNY and a median target of 25.35 CNY, implying significant upside potential from the current market price of 17.19 CNY. The mean recommendation of 1.60, driven by six strong-buy and nine buy ratings with no hold ratings, indicates strong analyst confidence in the company’s prospects. This consensus view suggests that the market may be undervaluing the company’s current earnings power and future growth potential.

Net income surged 50.3% year-over-year to CNY 20.3 billion, demonstrating robust profitability growth.

Free cash flow improved by 62.5% to CNY 15.9 billion, indicating strong cash generation capabilities.

Analysts project 33.6% upside to a mean price target of CNY 25.53, signaling bullish sentiment.

Revenue declined 3.0% year-over-year to CNY 206.7 billion, suggesting potential top-line growth challenges.

Debt-to-equity ratio of 0.48 is significantly higher than the 0.12 cohort median, indicating elevated leverage.

Medium liquidity risk flags potential constraints in meeting short-term financial obligations or market demands.

Revenue ¥61.20B, +5,0% YoY; Operating income +31,3% YoY.

• ▍Revenue ¥61.20B, +5,0% YoY
• ▍Operating income +31,3% YoY
• ▍Net income +15,2% YoY
• ▍Net margin 9.9%

Revenue ¥50.71B, −2,4% YoY; Operating income +63,9% YoY.

• ▍Revenue ¥50.71B, −2,4% YoY
• ▍Operating income +63,9% YoY
• ▍Net income +96,4% YoY
• ▍Net margin 11.1%

Revenue ¥48.77B, −14,0% YoY; Operating income +13,5% YoY.

• ▍Revenue ¥48.77B, −14,0% YoY
• ▍Operating income +13,5% YoY
• ▍Net income +41,2% YoY
• ▍Net margin 9.7%

Revenue ¥46.01B; Operating income ¥6.31B.

• ▍Revenue ¥46.01B
• ▍Operating income ¥6.31B
• ▍Net margin 8.6%

Revenue ¥58.27B; Operating income ¥8.50B.

• ▍Revenue ¥58.27B
• ▍Operating income ¥8.50B
• ▍Net margin 9.0%

Revenue ¥51.94B; Operating income ¥5.62B.

• ▍Revenue ¥51.94B
• ▍Operating income ¥5.62B
• ▍Net margin 5.5%

Revenue ¥56.70B; Operating income ¥7.62B.

• ▍Revenue ¥56.70B
• ▍Operating income ¥7.62B
• ▍Net margin 5.9%

Revenue ¥206.68B, −3,0% YoY; Operating income +39,8% YoY.

• ▍Revenue ¥206.68B, −3,0% YoY
• ▍Operating income +39,8% YoY
• ▍Net income +50,3% YoY
• ▍Free cash flow +62,5% YoY
• ▍Net margin 9.8%

Revenue ¥213.03B, +14,4% YoY; Operating income +90,2% YoY.

• ▍Revenue ¥213.03B, +14,4% YoY
• ▍Operating income +90,2% YoY
• ▍Net income +64,0% YoY
• ▍Free cash flow +224,4% YoY
• ▍Net margin 6.4%

Revenue ¥186.27B, +7,7% YoY; Operating income +34,6% YoY.

• ▍Revenue ¥186.27B, +7,7% YoY
• ▍Operating income +34,6% YoY
• ▍Net income +36,0% YoY
• ▍Free cash flow −116,2% YoY
• ▍Net margin 4.4%

Revenue ¥172.99B, −0,5% YoY; Operating income +12,3% YoY.

• ▍Revenue ¥172.99B, −0,5% YoY
• ▍Operating income +12,3% YoY
• ▍Net income +18,8% YoY
• ▍Free cash flow −222,4% YoY
• ▍Net margin 3.5%

Revenue ¥173.86B; Operating income ¥8.78B.

• ▍Revenue ¥173.86B
• ▍Operating income ¥8.78B
• ▍Net margin 2.9%