SHSE:600019

Stock Analysis Report

Baoshan Iron & Steel

Executive Summary

Baoshan Iron & Steel Co., Ltd. engages in the manufacture and sale of iron and steel products in China and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Baoshan Iron & Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

600019

-2.0%

CN Metals and Mining

0.5%

CN Market


1 Year Return

-20.1%

600019

10.0%

CN Metals and Mining

30.6%

CN Market


Shareholder returns

600019IndustryMarket
7 Day-0.5%-2.0%0.5%
30 Day-3.4%-5.2%-0.6%
90 Day-5.4%-4.0%4.0%
1 Year-13.9%-20.1%12.5%10.0%32.9%30.6%
3 Year26.2%7.8%-21.9%-24.3%-10.0%-13.5%
5 Year71.1%41.5%2.1%-2.0%40.3%31.9%

Price Volatility Vs. Market

How volatile is Baoshan Iron & Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Baoshan Iron & Steel undervalued compared to its fair value and its price relative to the market?

29.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 600019 (CN¥5.93) is trading below our estimate of fair value (CN¥8.46)

Significantly Undervalued: 600019 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 600019 is good value based on its PE Ratio (7.4x) compared to the Metals and Mining industry average (23.9x).

PE vs Market: 600019 is good value based on its PE Ratio (7.4x) compared to the CN market (32.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 600019 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 600019 is good value based on its PB Ratio (0.8x) compared to the CN Metals and Mining industry average (1.8x).


Next Steps

Future Growth

How is Baoshan Iron & Steel forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600019's forecast earnings growth (8% per year) is above the savings rate (2.7%).

Earnings vs Market: 600019's earnings (8% per year) are forecast to grow slower than the CN market (18.3% per year).

High Growth Earnings: 600019's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600019's revenue (1.8% per year) is forecast to grow slower than the CN market (15.4% per year).

High Growth Revenue: 600019's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Baoshan Iron & Steel performed over the past 5 years?

38.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 600019's earnings have grown significantly by 38.8% per year over the past 5 years.

Accelerating Growth: 600019's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600019 had negative earnings growth (-22.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (3.8%).


Return on Equity

High ROE: 600019's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: 600019 has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 600019 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Baoshan Iron & Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 600019's short term assets (CN¥128.7B) do not cover its short term liabilities (CN¥139.7B)

Long Term Liabilities: 600019's short term assets (128.7B) exceeds its long term liabilities (15.9B)


Debt to Equity History and Analysis

Debt Level: 600019's debt to equity ratio (36.5%) is considered satisfactory

Reducing Debt: 600019's debt to equity ratio has reduced from 46.2% to 36.5% over the past 5 years.

Debt Coverage: 600019's debt is well covered by operating cash flow (53%).

Interest Coverage: 600019 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is Baoshan Iron & Steel's current dividend yield, its reliability and sustainability?

8.43%

Current Dividend Yield


Dividend Yield vs Market

company8.4%marketbottom25%0.5%markettop25%1.9%industryaverage2.9%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 600019's dividend (8.43%) is higher than the bottom 25% of dividend payers in the CN market (0.45%).

High Dividend: 600019's dividend (8.43%) is in the top 25% of dividend payers in the CN market (1.89%)

Stable Dividend: 600019's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600019's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), 600019's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600019's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

What is the CEO of Baoshan Iron & Steel's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Angui Hou (47yo)

0.8yrs

Tenure

0

Mr. Angui Hou serves as President at Baoshan Iron & Steel Co., Ltd and has been its Director since January 28, 2019. He served as Vice President of Baoshan Iron & Steel Co., Ltd., since July 22, 2013. In N ...


Management Age and Tenure

2.1yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 600019's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 600019's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kunzong Wu (48yo)

    CFO & Chief Accountant

    • Tenure: 3.3yrs
  • Shuangjie Chu (55yo)

    Executive Vice President

    • Tenure: 2.7yrs
  • Juan Wang (47yo)

    Secretary

    • Tenure: 1.5yrs
  • Angui Hou (47yo)

    President

    • Tenure: 0.8yrs

Board Members

  • Dawei Xia (66yo)

    Independent Director

    • Tenure: 6.5yrs
  • Xiongwen Lu (53yo)

    Independent Director

    • Tenure: 1.4yrs
  • Buck Pei (62yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: CN¥350.00k
  • Jixin Zou (51yo)

    Chairman of the Board

    • Tenure: 0.8yrs
  • JianFeng Zhou (56yo)

    Director

    • Tenure: 0.8yrs
  • Angui Hou (47yo)

    President

    • Tenure: 0.8yrs
  • Jingang Zhang (49yo)

    Director

    • Tenure: 2.7yrs
  • Kehua Zhang (66yo)

    Independent Director

    • Tenure: 2.7yrs
  • Yonghong Zhu (50yo)

    Chairman of Board of Supervisors

    • Tenure: 2.7yrs
  • Xiaodi Wu (50yo)

    Director

    • Tenure: 1.4yrs

Company Information

Baoshan Iron & Steel Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Baoshan Iron & Steel Co., Ltd.
  • Ticker: 600019
  • Exchange: SHSE
  • Founded: 2000
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CN¥130.984b
  • Shares outstanding: 22.28b
  • Website: https://bg.baosteel.com

Number of Employees


Location

  • Baoshan Iron & Steel Co., Ltd.
  • No. 885 Fujin Road
  • Baoshan District
  • Shanghai
  • 201900
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600019SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2000
600019XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2000

Biography

Baoshan Iron & Steel Co., Ltd. engages in the manufacture and sale of iron and steel products in China and internationally. The company operates through Iron and Steel Manufacturing, Processing and Distrib ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 14:42
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.