CGN Mining (SEHK:1164) Reports Higher Half Year Sales And Wider Losses, Is It Too Expensive?

CGN Mining half year results draw investor focus

CGN Mining (SEHK:1164) has released half year results to 30 June 2026, reporting sales of HK$2,024.89 million and a net loss of HK$80.06 million. Investors are weighing higher sales against continuing losses.

CGN Mining’s results arrive after a sharp short term rebound in the stock, with a 30.77% 1 month share price return and a 12.50% 7 day share price return. The 1 year total shareholder return of 20.61% sits against weaker year to date share price performance and very large 3 and 5 year total shareholder returns that hint at shifting expectations for growth and risk.

Compare CGN Mining’s latest move with a curated group of uranium and nuclear-linked infrastructure stocks by reviewing the 92 nuclear energy infrastructure stocks that could be setting up for the next leg in this theme.

After CGN Mining’s sharp rebound and a fresh set of results that mix higher sales with ongoing losses, the decision is simple but not easy. Is it worth committing capital now, or is it better to wait for a cleaner entry?

Price to earnings for CGN Mining: is 51.4x justified?

CGN Mining closed at HK$3.06, and on the latest figures the stock trades on a P/E of 51.4x, which screens as expensive against peers and fair value estimates that have been calculated using other methods.

The P/E multiple compares the current share price with earnings per share. For CGN Mining, the 51.4x figure means investors are currently paying a high price for each unit of recent earnings, particularly when set against the company’s exposure to natural uranium trading and its current mix of profits and losses across different periods.

Several datapoints underline this premium. The P/E of 51.4x is higher than the estimated fair P/E of 11.9x, higher than the peer average of 14.2x, and higher than the Asian Oil and Gas industry average of 12x. This suggests the market is placing a strong emphasis on CGN Mining’s forecast revenue growth of 21.8% per year and expected earnings growth of 28.2% per year, while also accepting weaker interest cover, a low current Return on Equity of 9.9%, and a history of high non cash earnings.

The gap between a 51.4x P/E and a fair value level of 11.9x is large, and the peer and industry comparisons highlight just how far current pricing sits above these benchmarks. If the market eventually gravitates toward the fair ratio, that would imply a very different pricing profile for CGN Mining than today’s multiple suggests.

Explore the SWS fair ratio for CGN Mining

Result: Price to earnings of 51.4x (OVERVALUED)

However, CGN Mining still faces the risk that natural uranium trading remains volatile and that losses, weaker interest cover and high non cash earnings unsettle sentiment.

Find out about the key risks to this CGN Mining narrative.

Another view on CGN Mining’s value

The high 51.4x P/E makes CGN Mining look expensive, yet the SWS DCF model points the other way. On that approach, an estimated value of HK$15.30 per share versus the current HK$3.06 suggests the stock trades about 80% below that fair value estimate. Which signal carries more weight for you?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CGN Mining for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 267 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With CGN Mining presenting a mix of risk and reward signals, it makes sense to check the underlying data quickly and shape your own view. To balance the concerns with the potential upside, start with the 2 key rewards and 2 important warning signs.

Looking for more investment ideas beyond CGN Mining?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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