Shares of MMG Limited (HKG:1208), a major mining and metals company, surged 5.38% on Thursday morning after the company reported its latest earnings results. The stock rally came despite concerns raised by analysts over the dilutive impact of MMG's recent share issuances on its earnings per share (EPS) growth.

According to a report from investment research firm Simply Wall St, MMG's net profit increased by an impressive 161% in the last twelve months. However, the company's EPS growth lagged behind at 152% due to a 40% increase in the number of outstanding shares during the same period.

Analysts warn that while MMG's overall profit numbers look strong, the dilution from issuing new shares means that each shareholder's hypothetical "share" of the company's earnings has grown at a slower pace. This could potentially impact shareholder returns in the long run if the trend continues.