SEHK:639

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Shougang Fushan Resources Group

Market Cap

HK$10.4b

Last Updated

2021/07/25 10:14 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Flawless balance sheet established 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 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.


Market Performance


7 Day Return

-1.4%

639

0.02%

HK Metals and Mining

-2.7%

HK Market


1 Year Return

14.4%

639

91.9%

HK Metals and Mining

13.3%

HK Market

Return vs Industry: 639 underperformed the Hong Kong Metals and Mining industry which returned 91.9% over the past year.

Return vs Market: 639 exceeded the Hong Kong Market which returned 13.3% over the past year.


Shareholder returns

639IndustryMarket
7 Day-1.4%0.02%-2.7%
30 Day-9.6%5.0%-6.0%
90 Day2.5%-4.3%-7.7%
1 Year24.6%14.4%95.0%91.9%17.3%13.3%
3 Year40.4%5.1%57.0%44.8%8.7%-3.3%
5 Year146.3%49.3%130.2%106.4%44.6%19.0%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 639 (HK$2.06) is trading below our estimate of fair value (HK$4.91)

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 (10x) compared to the Hong Kong Metals and Mining industry average (9.5x).

PE vs Market: 639 is good value based on its PE Ratio (10x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 639 is poor value based on its PEG Ratio (1.7x)


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?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 639's forecast earnings growth (5.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 639's earnings (5.8% per year) are forecast to grow slower than the Hong Kong market (19% per year).

High Growth Earnings: 639's earnings are forecast to grow, but not significantly.

Revenue vs Market: 639's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 639's revenue (4.8% 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 (8.3%).


Past Performance

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

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 639 has high quality earnings.

Growing Profit Margin: 639's current net profit margins (27%) are lower than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: 639 has become profitable over the past 5 years, growing earnings by 36.4% per year.

Accelerating Growth: 639's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 639 had negative earnings growth (-5.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (46.8%).


Return on Equity

High ROE: 639's Return on Equity (6.9%) 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$6.9B) exceed its short term liabilities (HK$2.5B).

Long Term Liabilities: 639's short term assets (HK$6.9B) exceed its long term liabilities (HK$1.7B).


Debt to Equity History and Analysis

Debt Level: 639 is debt free.

Reducing Debt: 639 had no debt 5 years ago.

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


Dividend

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

8.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 639's dividend (8.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 639's dividend (8.01%) is in the top 25% of dividend payers in the Hong Kong market (6.32%)


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: 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 (66.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Wenli Fan (41 yo)

1.67yrs

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 ($USD355.22K) is below average for companies of similar size in the Hong Kong market ($USD608.90K).

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 (3.3 years average tenure).


Board Members

Experienced Board: 639's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 639 insiders have sold more shares than they have bought 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: NaN
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$10.407b
  • 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


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 Republi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 10:14
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
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.