Why did South-South Resources go from profit to loss in terms of after-tax profits in the 2024 fiscal year? How has Mongolia Energy performed recently?
Benefitting from the bullish announcement last night, Nan Nan Res (01229.HK) and Mongolia Energy (00276.HK) both surged more than 50% today. As of press time, the two companies rose by 56.67% and 30.14%, respectively.
Note: Performance of coal mining stocks.
The soaring stock prices of these two companies drove the entire coal sector to rise. As of press time, China Coal Energy (01898.HK), Yancoal Aus (03668.HK), and China Shenhua Energy (01088.HK) rose by 3.04%, 1.90%, and 1.38%, respectively.
Speaking of the news, Nan Nan Res stated in yesterday's post-market announcement that it is expected to have a post-tax profit of no less than HKD 36 million in the 2024 fiscal year (ending on March 31, 2024), reversing the loss of post-tax HKD 59.04 million in the 2023 fiscal year.
The previous loss expectations were related to Nan Nan Res's convertible bonds. The company issued zero-coupon convertible bonds with a principal amount of HKD 200 million in 2008, which will mature on March 13, 2026. The fair value gain from the convertible bonds was approximately HKD 62.79 million, while in the previous fiscal year, the fair value loss and variance of the bonds resulted in a loss of up to HKD 116.8 million.
Stimulated by this news, Nan Nan Res rose more than 66% at one point during the trading day.
Note: The price trend of Nan Nan Res
Mongolia Energy's annual revenue growth exceeds 9% year-on-year.
At the same time, Mongolia Energy’s stock price also rose, and it once surged more than 50% during the trading day.
According to the announcement released last night, the company published its annual performance for the 2024 fiscal year (ending on March 31, 2024), with a revenue of HKD 3.173 billion, an increase of 9.22% year-on-year. The owner's profit was HKD 1.678 billion, compared with a loss of HKD 1.603 billion during the same period last year.
In the 2023 fiscal year, Mongolia Energy sold approximately 1.7429 million tons of coke and refined coal, an increase from 1.3516 million tons in the previous year; the sales volume of thermal coal was 76.9 thousand tons, a decrease from 247.5 thousand tons in the previous year; the sales volume of raw coal was 53.8 thousand tons, an increase from 30.9 thousand tons in the previous year. The average selling prices (excluding sales tax) of coke and refined coal, thermal coal, and raw coal were HKD 1,796.5 per ton, HKD 24.4 per ton, and HKD 695.3 per ton, respectively. Compared with 2023, the average selling prices of coke and raw coal have decreased, while the average selling price of thermal coal has dropped significantly.