company background image
639

Shougang Fushan Resources GroupSEHK:639 Stock Report

Last Price

HK$2.36

Market Cap

HK$11.9b

7D

1.3%

1Y

24.9%

Updated

19 Jan, 2022

Data

Company Financials +
639 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends5/6

639 Stock Overview

Shougang Fushan Resources Group Limited, an investment holding company, engages in the mining and exploration of coal resources, and production and sale of raw and clean coking coal in the People's Republic of China.

Shougang Fushan Resources Group Competitors

China Coal Energy

SEHK:1898

HK$92.2b

Price History & Performance

Summary of all time highs, changes and price drops for Shougang Fushan Resources Group
Historical stock prices
Current Share PriceHK$2.36
52 Week HighHK$2.95
52 Week LowHK$1.78
Beta0.62
1 Month Change5.83%
3 Month Change0.86%
1 Year Change24.87%
3 Year Change41.32%
5 Year Change54.25%
Change since IPO114.55%

Recent News & Updates

Dec 31
We Like These Underlying Return On Capital Trends At Shougang Fushan Resources Group (HKG:639)

We Like These Underlying Return On Capital Trends At Shougang Fushan Resources Group (HKG:639)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Dec 16
Shougang Fushan Resources Group Limited's (HKG:639) Intrinsic Value Is Potentially 96% Above Its Share Price

Shougang Fushan Resources Group Limited's (HKG:639) Intrinsic Value Is Potentially 96% Above Its Share Price

In this article we are going to estimate the intrinsic value of Shougang Fushan Resources Group Limited ( HKG:639 ) by...

Sep 11
Shougang Fushan Resources Group (HKG:639) Has Announced That It Will Be Increasing Its Dividend To HK$0.08

Shougang Fushan Resources Group (HKG:639) Has Announced That It Will Be Increasing Its Dividend To HK$0.08

Shougang Fushan Resources Group Limited's ( HKG:639 ) dividend will be increasing to HK$0.08 on 28th of October. This...

Shareholder Returns

639HK Metals and MiningHK Market
7D1.3%1.1%0.3%
1Y24.9%11.1%-16.0%

Return vs Industry: 639 exceeded the Hong Kong Metals and Mining industry which returned 11.1% over the past year.

Return vs Market: 639 exceeded the Hong Kong Market which returned -16% over the past year.

Price Volatility

Is 639's price volatile compared to industry and market?
639 volatility
639 Average Weekly Movement6.7%
Metals and Mining Industry Average Movement6.6%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 639 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 639's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a4,711Wenli Fanhttps://www.shougang-resources.com.hk

Shougang Fushan Resources Group Limited, an investment holding company, engages in the mining and exploration of coal resources, and production and sale of raw and clean coking coal in the People's Republic of China. The company owns and operates the Xingwu coal mine covering an area of approximately 11.63 sq. km; the Jinjiazhuang coal mine covering an area of approximately 6.35 sq.

Shougang Fushan Resources Group Fundamentals Summary

How do Shougang Fushan Resources Group's earnings and revenue compare to its market cap?
639 fundamental statistics
Market CapHK$11.92b
Earnings (TTM)HK$1.20b
Revenue (TTM)HK$4.62b

9.9x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
639 income statement (TTM)
RevenueHK$4.62b
Cost of RevenueHK$2.48b
Gross ProfitHK$2.14b
ExpensesHK$933.81m
EarningsHK$1.20b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.24
Gross Margin46.27%
Net Profit Margin26.07%
Debt/Equity Ratio0.03%

How did 639 perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

72%

Payout Ratio

Valuation

Is Shougang Fushan Resources Group undervalued compared to its fair value and its price relative to the market?

44.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 639 (HK$2.36) is trading below our estimate of fair value (HK$4.26)

Significantly Below Fair Value: 639 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 639 is poor value based on its PE Ratio (9.9x) compared to the Hong Kong Metals and Mining industry average (6.1x).

PE vs Market: 639 is poor value based on its PE Ratio (9.9x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 639's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 639's PB Ratio (0.7x) is in line with the HK Metals and Mining industry average.


Future Growth

How is Shougang Fushan Resources Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 639's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: 639's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: 639's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 639's revenue is expected to decline over the next 3 years (-5.4% per year).

High Growth Revenue: 639's revenue is forecast to decline over the next 3 years (-5.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 639's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Shougang Fushan Resources Group performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 639 has high quality earnings.

Growing Profit Margin: 639's current net profit margins (26.1%) are lower than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: 639 has become profitable over the past 5 years, growing earnings by 23.9% per year.

Accelerating Growth: 639's earnings growth over the past year (14.9%) is below its 5-year average (23.9% per year).

Earnings vs Industry: 639 earnings growth over the past year (14.9%) underperformed the Metals and Mining industry 133.4%.


Return on Equity

High ROE: 639's Return on Equity (7.6%) is considered low.


Financial Health

How is Shougang Fushan Resources Group's financial position?


Financial Position Analysis

Short Term Liabilities: 639's short term assets (HK$7.9B) exceed its short term liabilities (HK$3.1B).

Long Term Liabilities: 639's short term assets (HK$7.9B) exceed its long term liabilities (HK$1.7B).


Debt to Equity History and Analysis

Debt Level: 639 has more cash than its total debt.

Reducing Debt: 639's debt to equity ratio has increased from 0.03% to 0.03% over the past 5 years.

Debt Coverage: 639's debt is well covered by operating cash flow (23137.9%).

Interest Coverage: 639 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Shougang Fushan Resources Group current dividend yield, its reliability and sustainability?

7.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 639's dividend (7.2%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 639's dividend (7.2%) is in the top 25% of dividend payers in the Hong Kong market (7.06%)


Stability and Growth of Payments

Stable Dividend: 639's dividend payments have been volatile in the past 10 years.

Growing Dividend: 639's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.1%), 639's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 639's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Wenli Fan (41 yo)

2.17yrs

Tenure

HK$2,760,000

Compensation

Mr. Fan Wenli has been Managing Director and Executive Director of Shougang Fushan Resources Group Limited (formerly known as Shougang Fushan Rsrc Grp Ltd.). since November 1, 2019. Mr. Fan is a senior min...


CEO Compensation Analysis

Compensation vs Market: Wenli's total compensation ($USD354.22K) is about average for companies of similar size in the Hong Kong market ($USD480.15K).

Compensation vs Earnings: Wenli's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 639's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 639's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 639 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

Shougang Fushan Resources Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Shougang Fushan Resources Group Limited
  • Ticker: 639
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: HK$11.922b
  • Shares outstanding: 5.05b
  • Website: https://www.shougang-resources.com.hk

Number of Employees


Location

  • Shougang Fushan Resources Group Limited
  • Bank of East Asia Harbour View Centre
  • 6th Floor
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 15:42
End of Day Share Price2022/01/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.