Changes in Hong Kong stocks | CGN Mining (01164) fell more than 4% in the afternoon and may experience negative gross profit in the first half of the year, partial offtake sales and delivery delays

The Zhitong Finance App learned that CGN Mining (01164) fell more than 4% in the afternoon. As of press release, it was down 4.74% to HK$2.615, with a turnover of HK$678.467 million.

According to the news, CGN Mining previously indicated that due to the weighted cost accounting method, the weighted average cost of book inventory is higher than the sales price of the current sales contract, and gross profit for the first half of the year is expected to be adversely affected; performance of some natural uranium annual underwriting contracts and delivery of goods will be delayed until the second half of the year, and it is not expected to have a significant negative impact on the annual business plan.

CMB International believes that the CGN Mining stock price correction since February has to a certain extent reflected policy changes in the Kazakh uranium mining industry and the high sulfur prices caused by the Middle East conflict. The agency maintained a “buy” rating, with a new target price of HK$3.37 based on net present value (NPV) (the NPV valuation multiplier was lowered from 3.5 times to 2.5 times to reflect changes in mining rights policy).