SHSE:600019

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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

Stable Share Price: 600019 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.2%

600019

-1.0%

CN Metals and Mining

-1.4%

CN Market


1 Year Return

-8.9%

600019

14.4%

CN Metals and Mining

28.8%

CN Market

Return vs Industry: 600019 underperformed the CN Metals and Mining industry which returned 14.6% over the past year.

Return vs Market: 600019 underperformed the CN Market which returned 29% over the past year.


Shareholder returns

600019IndustryMarket
7 Day5.2%-1.0%-1.4%
30 Day3.3%-2.4%1.0%
90 Day3.7%-4.9%-0.4%
1 Year-3.4%-8.9%16.2%14.4%31.0%28.8%
3 Year-16.7%-30.7%-21.5%-24.8%14.4%8.9%
5 Year13.2%-9.9%-4.1%-8.9%12.5%5.0%

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?

11.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 600019 (CN¥5.3) is trading above our estimate of fair value (CN¥2.74)

Significantly Below Fair Value: 600019 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 600019 is good value based on its PE Ratio (11.6x) compared to the CN Metals and Mining industry average (34.5x).

PE vs Market: 600019 is good value based on its PE Ratio (11.6x) compared to the CN market (41.6x).


Price to Earnings Growth Ratio

PEG Ratio: 600019 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 600019 is good value based on its PB Ratio (0.7x) compared to the CN Metals and Mining industry average (2.3x).


Next Steps

Future Growth

How is Baoshan Iron & Steel forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600019's forecast earnings growth (4.9% per year) is above the savings rate (3.3%).

Earnings vs Market: 600019's earnings (4.9% per year) are forecast to grow slower than the CN market (24.2% per year).

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

Revenue vs Market: 600019's revenue (0.8% per year) is forecast to grow slower than the CN market (17.7% per year).

High Growth Revenue: 600019's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600019's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

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

24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600019 has high quality earnings.

Growing Profit Margin: 600019's current net profit margins (3.6%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: 600019's earnings have grown significantly by 24.9% 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 (-43.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-3.1%).


Return on Equity

High ROE: 600019's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Baoshan Iron & Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 600019's short term assets (CN¥149.4B) exceed its short term liabilities (CN¥143.9B).

Long Term Liabilities: 600019's short term assets (CN¥149.4B) exceed its long term liabilities (CN¥18.6B).


Debt to Equity History and Analysis

Debt Level: 600019's debt to equity ratio (38.5%) is considered satisfactory.

Reducing Debt: 600019's debt to equity ratio has reduced from 46.5% to 38.5% over the past 5 years.

Debt Coverage: 600019's debt is well covered by operating cash flow (36.2%).

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


Balance Sheet


Next Steps

Dividend

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

5.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600019's dividend (5.28%) is higher than the bottom 25% of dividend payers in the CN market (0.35%).

High Dividend: 600019's dividend (5.28%) is in the top 25% of dividend payers in the CN market (1.64%)


Stability and Growth of Payments

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 (61.4%), 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 (51.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Genghong Sheng (56 yo)

no data

Tenure

CN¥2,871,600

Compensation

Mr. Genghong Sheng has been Deputy General Manager of Baoshan Iron & Steel Co., Ltd. since June 1, 2016. Mr. Sheng served as Director and Director of Baosteel Group Science Development Division of Shanghai ...


Leadership Team

NamePositionTenureCompensationOwnership
Genghong Sheng
Deputy GM & Presiding Officerno dataCN¥2.87mno data
Juan Wang
CFO & Secretary of the Board0.67yrCN¥1.89mno data
An Liu
Deputy General Manager3.67yrsCN¥2.65mno data
Chengwen Wei
Deputy General Manager1.5yrsCN¥632.40kno data
Yuliang Hu
Deputy General Manager0.75yrno datano data

1.1yrs

Average Tenure

50yo

Average Age

Experienced Management: 600019's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rong Xie
Independent Director2.42yrsCN¥350.00kno data
Jianchuan Luo
Director0.75yrno datano data
Xiongwen Lu
Independent Director2.42yrsCN¥350.00kno data
Yanchun Bai
Independent Director2.42yrsCN¥350.00kno data
Jixin Zou
Chairman of the Board1.75yrsno datano data
Meifen He
Supervisor7.58yrsCN¥930.00kno data
Hansheng Yu
Supervisor3.67yrsno datano data
Jingang Zhang
Director3.67yrsno datano data
Kehua Zhang
Independent Director3.67yrsCN¥350.00kno data
Yonghong Zhu
Chairman of Board of Supervisors3.67yrsno datano data
Linlong Yao
Director0.58yrCN¥1.72mno data
Yong Tian
Independent Director1.08yrsCN¥116.70kno data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 600019's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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¥114.474b
  • Shares outstanding: 22.27b
  • Website: https://bg.baosteel.com

Number of Employees


Location

  • Baoshan Iron & Steel Co., Ltd.
  • Baosteel Administration Center
  • 885 Fujin Road
  • Shanghai
  • 201999
  • 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. It operates through Iron and Steel Manufacturing, Processing and Distribution, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 14:34
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.