SEHK:323

Stock Analysis Report

Maanshan Iron & Steel

Executive Summary

Maanshan Iron & Steel Company Limited manufactures and sells iron and steel products, and related by-products in the People's Republic of China and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 323 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

323

-6.2%

HK Metals and Mining

-3.3%

HK Market


1 Year Return

-24.0%

323

-19.2%

HK Metals and Mining

-9.6%

HK Market

Return vs Industry: 323 underperformed the Hong Kong Metals and Mining industry which returned -18.6% over the past year.

Return vs Market: 323 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

323IndustryMarket
7 Day-1.0%-6.2%-3.3%
30 Day-2.7%-5.8%-3.8%
90 Day-3.6%4.3%-0.2%
1 Year-15.5%-24.0%-16.5%-19.2%-6.3%-9.6%
3 Year15.9%-3.0%-14.2%-19.7%11.2%-0.05%
5 Year56.6%31.1%0.7%-9.9%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 323 (HK$2.91) is trading below our estimate of fair value (HK$4.88)

Significantly Below Fair Value: 323 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 323 is poor value based on its PE Ratio (11.1x) compared to the Metals and Mining industry average (10.4x).

PE vs Market: 323 is poor value based on its PE Ratio (11.1x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 323 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 323 is overvalued based on its PB Ratio (0.7x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Maanshan Iron & Steel forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 323's forecast earnings growth (30.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 323's earnings (30.4% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 323's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: 323's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 323's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

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

52.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 323 has a large one-off gain of CN¥672.2M impacting its September 30 2019 financial results.

Growing Profit Margin: 323's current net profit margins (2.4%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: 323's earnings have grown significantly by 52.1% per year over the past 5 years.

Accelerating Growth: 323's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 323 had negative earnings growth (-73.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (-25%).


Return on Equity

High ROE: 323's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maanshan Iron & Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 323's short term assets (CN¥38.2B) do not cover its short term liabilities (CN¥40.7B).

Long Term Liabilities: 323's short term assets (CN¥38.2B) exceed its long term liabilities (CN¥5.4B).


Debt to Equity History and Analysis

Debt Level: 323's debt to equity ratio (56.1%) is considered high.

Reducing Debt: 323's debt to equity ratio has reduced from 105.6% to 56.1% over the past 5 years.

Debt Coverage: 323's debt is well covered by operating cash flow (43.1%).

Interest Coverage: 323 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 323 has a high level of physical assets or inventory.

Debt Coverage by Assets: 323's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

5.49%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage4.1%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 323's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 323's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 323's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 323's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 323 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 323's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Maanshan Iron & Steel has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Yi Ding
Executive Chairman of the Board6.5yrsno datano data
Haifan Qian
Executive Director8.5yrsCN¥820.60kno data
Jun Tian
Deputy General Manager3yrsCN¥669.30kno data
Wenyang Zhang
Deputy GM & Executive Director2.3yrsCN¥666.24kno data
Ming Fu
Deputy General Manager2.3yrsCN¥668.70kno data
Hongyun He
Joint Company Secretary1.8yrsCN¥311.50kno data
Qunli Xing
Head of Accounting0yrsno datano data
Hoi Shan Chiu
Joint Company Secretary1.8yrsno datano data

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: 323's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yi Ding
Executive Chairman of the Board6.5yrsno datano data
Haifan Qian
Executive Director8.5yrsCN¥820.60kno data
Wenyang Zhang
Deputy GM & Executive Director2.3yrsCN¥666.24kno data
Xiaofeng Zhang
Chairman of the Supervisory Committee11.5yrsCN¥854.89kno data
Tongzhou Qin
Independent Supervisor2.3yrsno datano data
Qianchun Zhang
Supervisor2.3yrsno datano data
Tianbao Ren
Non-Executive Director8.5yrsno datano data
Chunxia Zhang
Independent Non-executive Director2.3yrsCN¥100.00kno data
Shaofang Zhu
Independent Non-executive Director2.3yrsCN¥100.00kno data
Xianzhu Wang
Independent Non-executive Director2.3yrsCN¥100.00kno data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 323's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Maanshan Iron & Steel Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maanshan Iron & Steel Company Limited
  • Ticker: 323
  • Exchange: SEHK
  • Founded: 1953
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$23.008b
  • Shares outstanding: 7.70b
  • Website: https://www.magang.com.cn

Number of Employees


Location

  • Maanshan Iron & Steel Company Limited
  • No. 8, Jiu Hua Xi Road
  • Maanshan
  • Anhui Province
  • 243003
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAAN.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 1993
323SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 1993
YM9ADB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 1993
323SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 1993
323SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 1993
600808SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJun 1994
600808XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJun 1994

Biography

Maanshan Iron & Steel Company Limited manufactures and sells iron and steel products, and related by-products in the People's Republic of China and internationally. It offers hot-rolled and cold rolled, and galvanized and color coated strips; ship plates, container use strips, electric steel, pipe steel, etc.; H-beam, angle, and channel sections; cold-heading wire rods; and train wheels for wagon cars. The company also provides railway wheel and tire, bearing, spring, gear, tool and die, ring, high grade cold heading, non-quenched and tempered, anchor chain, roller, and alloy structural steel, as well as alloy tube billet, steel for heavy castings and forgings, and other series. In addition, it is involved in the production and sale of coke, coke chemical, energy, and metallic products, as well as screw threaded, round, section, angle, and deformed steel products; sale of iron ore and iron ore fines, and scrap steel products; and metallurgy and extended processing of ferrous metals and sale of resulting products, as well as extended processing of iron and steel products. Further, the company researches and develops automobile, home electrical appliances, engineering, and machinery materials; produces and sells steel and stamping spare parts; provides warehousing, business consulting, storage, technical consulting, advertising, magazine retailing, and exhibition services; offers products and equipment used in rail transport, urban transport, and machinery construction; and trades in pig iron. Additionally, it engages in the investment and trading businesses. The company was founded in 1953 and is headquartered in Maanshan, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:37
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
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.