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South Manganese Investment Limited (1091) Fair Value & Analysis

Basic Materials · HK · Market cap HK$2.1B

SM South Manganese Investment Limited 1091 · HK
PriceHK$0.3700
Fair ValueHK$0.2085
Upside-43.7%
Quality46/100
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Mixed Growth
Thin margins · 2.6% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Narrow moat 33/100
Evidence: Medium Range HK$0.1546 – HK$0.2588 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 2 days ago

Share price −9.8% over the past month.

Below-average quality, and screening another 44% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.2588). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$1.75 HK$0.1710 Fair Value HK$0.2085 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.1710 – HK$1.75 · fair‑value band HK$0.1546 – HK$0.2588 · the HK$0.3700 price screens above the HK$0.2085 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

South Manganese Investment Limited (1091) currently trades at HK$0.3700, while our model-based Fair Value estimate is HK$0.2085, implying the stock looks roughly 43.7% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, South Manganese Investment Limited generated revenue of HK$6.4B at a net margin of 2.6%. Revenue declined 53.8% year over year. It earns a return on equity of 6.4%. Net debt stands at HK$1.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1546 (bear case) to HK$0.2588 (bull case); at HK$0.3700, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 48% below its 52-week high and 40% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -42% fair-value upside, at -44%, 1091 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$2.37 HK$3.64 HK$5.58 80
Residual Income HK$0.4500 HK$0.4600 HK$0.4400 76
Rev-Margin DCF HK$1.41 HK$1.98 HK$2.67 74
All 26 models by family
DCF Models
FCF DCF HK$2.36 HK$3.69 HK$5.75 38
Owner Earnings HK$0.5500 HK$0.7700 HK$1.11 31
5Y Revenue Exit HK$1.41 HK$1.96 HK$2.64 39
5Y EBITDA Exit HK$1.66 HK$2.44 HK$3.35 41
5Y P/E Exit HK$1.20 HK$1.55 HK$1.90 38
10Y Revenue Exit HK$1.71 HK$2.31 HK$3.09 36
10Y EBITDA Exit HK$1.89 HK$2.64 HK$3.64 37
10Y P/E Exit HK$1.60 HK$2.02 HK$2.52 35
Earnings-Based
Graham-Dodd HK$0.2300 HK$0.8500 HK$1.15 54
Lynch FV HK$0.2000 HK$0.2900 HK$0.3800 50
PEG = 1.0 HK$0.2000 HK$0.2900 HK$0.3800 46
EPV HK$0.7500 HK$0.8500 HK$0.9200 59
Dividend Discount
Gordon GGM HK$0.0100 HK$0.0100 70
DDM Multi-Stage HK$0.0100 HK$0.0100 61
Multiples
P/E Multiple HK$0.4300 HK$0.5800 HK$0.7200 63
P/S Multiple HK$0.4300 HK$0.5800 HK$0.7200 58
P/B Multiple HK$0.4300 HK$0.5800 HK$0.7200 55
EV/EBIT HK$1.04 HK$1.32 HK$1.61 53
EV/EBITDA HK$1.40 HK$1.81 HK$2.21 54
EV/Revenue HK$0.9200 HK$1.24 HK$1.56 43
Asset-Based
NCAV (Graham) HK$0.3000 HK$0.4000 HK$0.5900 50
Growth DCF
Growth DCF HK$2.37 HK$3.64 HK$5.58 80
Rev-Margin DCF HK$1.41 HK$1.98 HK$2.67 74
Economic Profit
Residual Income HK$0.4500 HK$0.4600 HK$0.4400 76
ROIC Compounder HK$0.8000 HK$0.9800 HK$1.21 72
Growth Earnings
Growth-Adj P/E HK$0.3400 HK$0.4800 HK$0.6200 68

Widest divergence: DCF Models (HK$2.02) versus Dividend Discount (HK$0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$6.4B
Revenue growth (YoY) -53.8%
Net margin 2.6%
Return on equity 6.4%
Free cash flow HK$946M FY2025
P/E ratio 10.5 as of Jul 2, 2026
More key figures
Operating margin 4.2%
EPS (TTM) HK$0.0500
EPS growth (YoY) -64.8%
Net debt HK$1.9B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 47 · Market factors (momentum, volatility) 35

Profitability 30
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 2
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

South Manganese Investment Limited, an investment holding company, engages in the manganese mining, ore processing, and downstream processing operations in Mainland China, rest of Asia, Europe, and North America. It operates through four segments: Manganese Mining, EMM and Alloying Materials Production, Battery Materials Production, and Other Business.

Full company description

South Manganese Investment Limited, an investment holding company, engages in the manganese mining, ore processing, and downstream processing operations in Mainland China, rest of Asia, Europe, and North America. It operates through four segments: Manganese Mining, EMM and Alloying Materials Production, Battery Materials Production, and Other Business. The Manganese Mining segment mines and produces manganese products, including manganese concentrates and natural discharging manganese powder and sand. The EMM and Alloying Materials Production segment mines and processes ores used in hydrometallurgical processing for/and production of electrolytic manganese metal and manganese briquette, and pyrometallurgical processing to produce silicomanganese alloy and ferromanganese. The Battery Materials Production segment manufactures and sells battery material products, such as electrolytic manganese dioxide, manganese sulfate, lithium manganese oxide, lithium nickel cobalt manganese oxide, and trimanganese tetraoxide. The Other Business segment trades in various commodities comprising manganese ores, EMM, manganese alloys, and non-manganese metals; sells scraps; and rents investment properties and leasehold land, as well as invests in companies engaged in the mining and production of non-manganese metals and trading business. It is also involved in production of sulphuric acid and steam; trading of manganese; and mines and sells manganese ore/gabon products. The company was formerly known as CITIC Dameng Holdings Limited and changed its name to South Manganese Investment Limited in February 2021. South Manganese Investment Limited was incorporated in 2005 and is headquartered in Admiralty, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

South Manganese Investment Limited reported revenue of HK$6.4B in FY2025 versus HK$12.8B in FY2021, a compound −16.1%/yr. Reported net income was HK$167M in FY2025, compounding −22.1%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$6.4B
Latest YoY
−51.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−26.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.8%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Revenue −16.1%/yr
FY21 HK$12.8B
FY22 HK$16.0B
FY23 HK$17.1B
FY24 HK$13.2B
FY25 HK$6.4B
Net income −22.1%/yr
FY21 HK$455M
FY22 HK$336M
FY23 HK$64.1M
FY24 −HK$725M
FY25 HK$167M

1091 screens 44% overvalued. Compare with BHP Group →

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Cite: Fair Value Calculator (2026). "South Manganese Investment Limited Fair Value". https://www.fairvalue-calculator.com/stock/1091

Peer Group

Other Industrial Metals & Mining · 478 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Above median
Fair Value upside −44% · Below median
Return on equity (TTM) 6% · Above median
Return on assets 3% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth -54% · Bottom 25%
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.27× · Higher than median

Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper

P/E (TTM) 10.5× · Cheaper than median
P/B 0.71× · Cheaper than median
P/S (TTM) 0.33× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 1.5× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 24
PAST 26 · sector 0
HEALTH 86 · sector 96
DIVIDEND 2 · sector 38

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is South Manganese Investment Limited (1091) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.2085 versus a price of HK$0.3700, about −44% (overvalued).
What is the fair value of 1091?
Our model-based fair value for South Manganese Investment Limited is HK$0.2085 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.3700.
What is the quality score of 1091?
South Manganese Investment Limited has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of South Manganese Investment Limited (1091)?
South Manganese Investment Limited reported trailing-twelve-month revenue of about HK$6.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1091?
The net profit margin of South Manganese Investment Limited is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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