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Sinomine Resource Exploration Co Ltd (002738) Fair Value & Analysis

Basic Materials · CN · Market cap 45.7B CNY (≈ $6.8B) · ISIN CNE100001WV3

What is Sinomine Resource Exploration Co Ltd really worth?

SR Sinomine Resource Exploration Co Ltd 002738 · SHE
Price¥48.39
Fair Value¥12.79
Upside−73.6%
Quality48/100

Below-average quality, and trading another 278% above our fair value of ¥12.79.

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Strengths

Solidly profitable · 13.0% net margin
Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +38.7 %/yr)
!Trails peers (5/14)
!Moderate moat 56/100
!Weak on past: 27 out of 100
!Weak on dividend: 21 out of 100

For context

·1.03% dividend yield
Evidence: High Range ¥12.75 – ¥13.48

Fair value as of: Aug 30, 2026

From 25 valuation models · updated 6 days ago

Share price −1.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (¥13.48). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The models converge in a tight band (¥12.75 to ¥13.48), unusually little disagreement for a valuation.

Price vs Fair Value (5 years)

¥95.77 ¥10.23 Fair Value ¥12.79 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ¥10.23 – ¥95.77 · fair‑value band ¥12.75 – ¥13.48 · the ¥48.39 price screens above the ¥12.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Sinomine Resource Exploration Co Ltd (002738) currently trades at ¥48.39, while our model-based Fair Value estimate is ¥12.79, implying the stock looks roughly 278.4% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Basic Materials sector. Bull case: the DCF Models group reads highest at a median of ¥24.62 per share, and 0 of the 25 models we run sit above the ¥48.39 price. Bear case: the Dividend Discount group reads lowest at ¥10.13, and 25 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Sinomine Resource Exploration Co Ltd generated revenue of 6.4B CNY at a net margin of 13.0%. Revenue declined 10.4% year over year. It earns a return on equity of 6.8%. The balance sheet holds a net cash position of 2.2B CNY. Fundamentals as of Aug 30, 2026

Our scenario range runs from ¥12.75 (bear case) to ¥13.48 (bull case); at ¥48.39, 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 52% below its 52-week high and 69% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −37% fair-value upside, at −74%, 002738 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.4399 per share, which is 3.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence ¥14.08 ¥19.48 ¥36.69 78
Growth DCF ¥13.52 ¥21.14 ¥36.55 76
Residual Income ¥12.62 ¥12.63 ¥11.41 76
All 25 models by family
DCF Models
FCF DCF best evidence ¥14.08 ¥19.48 ¥36.69 78
5Y Revenue Exit ¥14.94 ¥23.28 ¥40.80 70
5Y EBITDA Exit ¥17.39 ¥28.23 ¥49.52 73
5Y P/E Exit ¥13.34 ¥23.88 ¥38.20 69
10Y Revenue Exit ¥14.45 ¥28.06 ¥37.31 66
10Y EBITDA Exit ¥16.67 ¥33.33 ¥62.98 65
10Y P/E Exit ¥13.72 ¥24.62 ¥42.45 61
Earnings-Based
Graham-Dodd ¥4.31 ¥30.08 ¥42.21 63
Lynch FV ¥13.16 ¥18.79 ¥24.43 61
PEG = 1.0 ¥13.16 ¥18.79 ¥24.43 57
EPV ¥13.24 ¥14.67 ¥15.92 74
Dividend Discount
Gordon GGM ¥5.78 ¥12.01 ¥19.06 66
DDM Multi-Stage ¥5.78 ¥10.13 ¥12.61 66
Multiples
P/E Multiple ¥8.09 ¥10.78 ¥13.48 63
P/S Multiple ¥8.09 ¥10.78 ¥13.48 58
P/B Multiple ¥8.09 ¥10.78 ¥13.48 55
EV/EBIT ¥17.12 ¥21.28 ¥25.43 66
EV/EBITDA ¥18.10 ¥22.58 ¥27.06 67
EV/Revenue ¥14.18 ¥18.26 ¥22.34 54
Asset-Based
NCAV (Graham) ¥8.44 ¥11.31 ¥16.88 54
Growth DCF
Growth DCF ¥13.52 ¥21.14 ¥36.55 76
Rev-Margin DCF ¥15.55 ¥25.94 ¥46.56 70
Economic Profit
Residual Income ¥12.62 ¥12.63 ¥11.41 76
ROIC Compounder ¥13.24 ¥14.67 ¥15.92 72
Growth Earnings
Growth-Adj P/E ¥15.07 ¥21.53 ¥27.99 67

Widest divergence: DCF Models (¥24.62) versus Dividend Discount (¥10.13). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 42.1
P/S ratio 2.94 P/E × margin
EPS (TTM) ¥1.15 price ÷ EPS = P/E 42.1
Dividend yield 1.0% payout 43.5%
Net margin 7.0% FY2025
Return on equity 6.8% TTM
More key figures
Profitability
Return on assets (EBIT) 14.0% avg 5y
Operating margin 44.9% TTM
Growth
Revenue (TTM) 6.4B CNY TTM
Revenue growth (YoY) −10.4% 3y avg −6.6%
EPS growth (YoY) +277%
Balance sheet & cash flow
Free cash flow 404M CNY FY2025
Net cash 2.2B CNY FY2024

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 50 · Market factors (momentum, volatility) 39

Profitability 26
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 13
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 66
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Sinomine Resource Group Co., Ltd. engages in the development and utilization of lithium-ion battery raw materials in China and internationally. The company offers cesium and rubidium chemicals; technical services for Pollucite; battery-grade lithium hydroxide, battery-grade lithium carbonate, and battery-grade lithium fluoride; and geo-technical services.

Full company description

Sinomine Resource Group Co., Ltd. engages in the development and utilization of lithium-ion battery raw materials in China and internationally. The company offers cesium and rubidium chemicals; technical services for Pollucite; battery-grade lithium hydroxide, battery-grade lithium carbonate, and battery-grade lithium fluoride; and geo-technical services. It is also involved in hard rock lithium ore development; lithium concentrates processing; production and sale of lithium compounds; mining property development; and trade of lithium, cesium, chromium, beryllium, tantalum, and other mineral products. The company was formerly known as Sinomine Resource Exploration Co., Ltd. and changed its name to Sinomine Resource Group Co., Ltd. in August 2018. Sinomine Resource Group Co., Ltd. was founded in 1999 and is headquartered in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sinomine Resource Exploration Co Ltd reported revenue of 6.5B CNY in FY2025 versus 2.4B CNY in FY2021, a compound +28.3%/yr. Reported net income was 458M CNY in FY2025, compounding −5.0%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
6.5B CNY
Latest YoY
+22.0%
Avg. revenue 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.
−6.6%
Avg. revenue 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.
+38.7%
Avg. revenue 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.
+23.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+15.7% (14.7 + 1.0)
Revenue +28.3%/yr
FY21 2.4B CNY
FY22 8.0B CNY
FY23 6.0B CNY
FY24 5.4B CNY
FY25 6.5B CNY
Net income −5.0%/yr
FY21 562M CNY
FY22 3.3B CNY
FY23 2.2B CNY
FY24 757M CNY
FY25 458M CNY
Character of growth · EPS growth decomposed (2013-2024) +41.1 % p.a.
Revenue per share +29.1 %

of which total revenue +39.3 % · buybacks/dilution −7.3 %

EBIT margin +10.0 %
Tax rate +0.8 %
Residual (interest, one-offs) −1.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

002738 screens 278% overvalued. Compare with BHP Group →

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Cite: Fair Value Calculator (2026). "Sinomine Resource Exploration Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002738

Peer Group

Other Industrial Metals & Mining · 469 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 48 · Above median
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Top 25%
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 45% · Top 25%
Revenue growth −10% · Below median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.14× · Higher than median

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

P/E (TTM) 42.1× · Pricier than 75% of peers
P/B 3.76× · Pricier than 75% of peers
P/S (TTM) 7.17× · Pricier than median
P/FCF 16.9× · Pricier than median
EV/EBITDA 24.8× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 38
PAST27 · sector 0
HEALTH93 · sector 96
DIVIDEND21 · 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

Similar stocks

10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

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Hindustan Zinc Limited HINDZINC ₹573.00 ₹508.34 −11%
China Tungsten And Hightech Materials Co 000657 ¥66.76 ¥9.55 −86%
China Northern Rare Earth (Group) High-Tech Co 600111 ¥41.02 ¥10.59 −74%
Western Mining Co 601168 ¥37.85 ¥25.99 −31%
Boliden AB BOL kr 527.80 kr 461.48 −13%

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Frequently asked questions

Is Sinomine Resource Exploration Co Ltd (002738) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ¥12.79 versus a price of ¥48.39, about −74% upside (overvalued).
What is the fair value of 002738?
Our model-based fair value for Sinomine Resource Exploration Co Ltd is ¥12.79 (as of Aug 30, 2026), built from audited fundamentals. The current price: ¥48.39.
What is the quality score of 002738?
Sinomine Resource Exploration Co Ltd has a Quality Score of 48/100. 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 Sinomine Resource Exploration Co Ltd (002738)?
Sinomine Resource Exploration Co Ltd reported trailing-twelve-month revenue of about 6.4B CNY (latest available figure, as of Aug 30, 2026).
What is the net profit margin of 002738?
The net profit margin of Sinomine Resource Exploration Co Ltd is about 13.0%, meaning it keeps roughly 13.0% of revenue as net income. Based on the latest reported figures.
Does Sinomine Resource Exploration Co Ltd pay a dividend?
Sinomine Resource Exploration Co Ltd currently shows a dividend yield of about 1.03% relative to its recent price (as of Aug 30, 2026).
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