SEHK:639

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Shougang Fushan Resources Group

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Shougang Fushan Resources Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 639 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.4%

639

1.7%

HK Metals and Mining

-5.8%

HK Market


1 Year Return

5.2%

639

-2.5%

HK Metals and Mining

-2.9%

HK Market

Return vs Industry: 639 exceeded the Hong Kong Metals and Mining industry which returned -2.5% over the past year.

Return vs Market: 639 exceeded the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

639IndustryMarket
7 Day14.4%1.7%-5.8%
30 Day19.6%25.2%9.3%
90 Day21.2%24.0%11.4%
1 Year16.7%5.2%0.05%-2.5%1.1%-2.9%
3 Year39.5%4.6%-17.7%-22.5%4.0%-7.2%
5 Year146.5%34.6%8.8%-3.3%7.6%-10.3%

Price Volatility Vs. Market

How volatile is Shougang Fushan Resources Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 639 (HK$1.83) is trading below our estimate of fair value (HK$2.2)

Significantly Below Fair Value: 639 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 639 is good value based on its PE Ratio (8.5x) compared to the HK Metals and Mining industry average (10.6x).

PE vs Market: 639 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (10.4x).


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 (0.6x) is in line with the HK Metals and Mining industry average.


Next Steps

Future Growth

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

-3.3%

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 (-3.3% per year).

Earnings vs Market: 639's earnings are forecast to decline over the next 3 years (-3.3% per year).

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

Revenue vs Market: 639's revenue (1.9% per year) is forecast to grow slower than the Hong Kong market (10.9% per year).

High Growth Revenue: 639's revenue (1.9% per year) is forecast to grow slower than 20% 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 (6.1%).


Next Steps

Past Performance

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

54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 639 has high quality earnings.

Growing Profit Margin: 639's current net profit margins (29.5%) are lower than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: 639 has become profitable over the past 5 years, growing earnings by 54.2% per year.

Accelerating Growth: 639's earnings growth over the past year (3.6%) is below its 5-year average (54.2% per year).

Earnings vs Industry: 639 earnings growth over the past year (3.6%) exceeded the Metals and Mining industry -20%.


Return on Equity

High ROE: 639's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Shougang Fushan Resources Group's financial position?


Financial Position Analysis

Short Term Liabilities: 639's short term assets (HK$7.4B) exceed its short term liabilities (HK$2.8B).

Long Term Liabilities: 639's short term assets (HK$7.4B) exceed its long term liabilities (HK$1.6B).


Debt to Equity History and Analysis

Debt Level: 639 is debt free.

Reducing Debt: 639 has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.

Debt Coverage: 639 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 639 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

9.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 639's dividend (9.51%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 639's dividend (9.51%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80%), 639's 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 (64.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Wenli Fan (40yo)

0.67

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 ($USD356.00K) is below average for companies of similar size in the Hong Kong market ($USD529.81K).

Compensation vs Earnings: Insufficient data to compare Wenli's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Rucai Ding
Chairman of the Board2.5yrsHK$3.14m0.0023% HK$219.3k
Wenli Fan
MD & Executive Director0.67yrHK$2.76mno data
Qingshan Liu
Deputy MD & Executive Director11.67yrsHK$4.09mno data
Zhaoqiang Chen
Deputy MD & Executive Director10.5yrsHK$3.97m0.051% HK$4.9m
Wang Dongming
Executive Director0.083yrno datano data
Ling Yan Kong
Company Secretary2.25yrsno datano data

2.3yrs

Average Tenure

52yo

Average Age

Experienced Management: 639's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rucai Ding
Chairman of the Board2.5yrsHK$3.14m0.0023% HK$219.3k
Wenli Fan
MD & Executive Director0.67yrHK$2.76mno data
Qingshan Liu
Deputy MD & Executive Director11.67yrsHK$4.09mno data
Zhaoqiang Chen
Deputy MD & Executive Director10.5yrsHK$3.97m0.051% HK$4.9m
Wang Dongming
Executive Director0.083yrno datano data
Yubao Shi
Non-Executive Director0.83yrHK$140.00kno data
Wai Yin Choi
Independent Non-Executive Director16yrsHK$420.00k0.0023% HK$219.3k
Wah Sze Kee
Independent Non-Executive Director23.25yrsHK$420.00k0.013% HK$1.3m
Japhet Sebastian Law
Independent Non-Executive Director6.83yrsHK$420.00kno data
Jianxiong Chen
Independent Non-Executive Director0.083yrno datano data
Chang Cun
Non-Executive Director2yrsHK$420.00kno data

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: 639's board of directors are not considered experienced ( 2.5 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

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


Key Information

  • Name: Shougang Fushan Resources Group Limited
  • Ticker: 639
  • Exchange: SEHK
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$9.702b
  • Shares outstanding: 5.30b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
639SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
FU7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
FSHY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
639SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
639SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

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 11.6 sq. km; the Jinjiazhuang coal mine covering an area of approximately 6.08 sq. km; and the Zhaiyadi coal mine covering an area of approximately 13.9 sq. km located in the Liulin County, Shanxi Province. It primarily serves steel manufacturers. The company was formerly known as Fushan International Energy Group Limited and changed its name to Shougang Fushan Resources Group Limited in May 2011. Shougang Fushan Resources Group Limited is based in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/16 12:38
End of Day Share Price2020/07/13 00:00
Earnings2019/12/31
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.