SEHK:639Metals and Mining
Shougang Fushan (SEHK:639) Stock Rallies Into a Profitability Squeeze
Shougang Fushan Resources Group stock has been grinding higher in recent weeks, yet today’s move came down to one blunt question. Does a coal producer with a trailing P/E of 18.3x and a 4.09% yield that strains free cash flow really deserve this much optimism after its latest half year?
The headline is not the revenue line. It is the squeeze on profitability. Net profit margin over the last year sat at 13.2%, well below the prior 22.9%. That is the pressure point the market is wrestling with,...