Shougang Fushan Resources Group Limited

SZSC:639 Stock Report

Market Cap: HK$13.3b

Shougang Fushan Resources Group Valuation

Is 639 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 639 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 639 (HK$2.62) is trading below our estimate of fair value (HK$2.74)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 639?

Key metric: As 639 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 639. This is calculated by dividing 639's market cap by their current earnings.
What is 639's PE Ratio?
PE Ratio8.9x
EarningsHK$1.49b
Market CapHK$13.34b

Price to Earnings Ratio vs Peers

How does 639's PE Ratio compare to its peers?

The above table shows the PE ratio for 639 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.4x
826 Tiangong International
15.8x15.6%HK$5.7b
975 Mongolian Mining
5.1xn/aHK$8.6b
3788 China Hanking Holdings
6.2xn/aHK$1.5b
2798 Perennial Energy Holdings
2.6xn/aHK$1.7b
639 Shougang Fushan Resources Group
8.9x-4.7%HK$13.3b

Price-To-Earnings vs Peers: 639 is expensive based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (7.4x).

Price to Earnings Ratio vs Industry

How does 639's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6890 KangLi International Holdings
1.7xn/aUS$31.93m
No more companies available in this PE range
639 8.9xIndustry Avg. 10.0xNo. of Companies6PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 639 is good value based on its Price-To-Earnings Ratio (8.9x) compared to the Hong Kong Metals and Mining industry average (10.4x).

Price to Earnings Ratio vs Fair Ratio

What is 639's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

639 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: 639 is expensive based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 639 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.62
HK$3.21
+22.6%
6.0%HK$3.52HK$3.00n/a4
Nov ’25HK$2.83
HK$3.26
+15.1%
8.1%HK$3.70HK$3.00n/a4
Oct ’25HK$2.95
HK$3.26
+10.5%
8.3%HK$3.71HK$3.00n/a4
Sep ’25HK$2.61
HK$3.35
+28.4%
8.1%HK$3.71HK$3.00n/a4
Aug ’25HK$2.72
HK$3.38
+24.2%
7.8%HK$3.71HK$3.00n/a4
Jul ’25HK$3.20
HK$3.38
+5.5%
7.8%HK$3.71HK$3.00n/a4
Jun ’25HK$3.57
HK$3.38
-5.4%
7.8%HK$3.71HK$3.00n/a4
May ’25HK$2.99
HK$3.29
+10.1%
8.0%HK$3.71HK$3.00n/a4
Apr ’25HK$2.68
HK$3.31
+23.6%
8.9%HK$3.79HK$3.00n/a4
Mar ’25HK$3.27
HK$3.24
-1.0%
12.0%HK$3.79HK$2.70n/a4
Feb ’25HK$3.10
HK$3.24
+4.4%
12.0%HK$3.79HK$2.70n/a4
Jan ’25HK$2.88
HK$3.16
+9.5%
13.6%HK$3.79HK$2.70n/a4
Dec ’24HK$2.82
HK$3.16
+11.9%
13.6%HK$3.79HK$2.70n/a4
Nov ’24HK$2.52
HK$3.16
+25.2%
13.6%HK$3.79HK$2.70HK$2.834
Oct ’24HK$2.66
HK$3.16
+18.6%
13.6%HK$3.79HK$2.70HK$2.954
Sep ’24HK$2.26
HK$2.72
+20.1%
20.8%HK$3.30HK$2.05HK$2.614
Aug ’24HK$2.29
HK$2.75
+20.1%
19.6%HK$3.30HK$2.05HK$2.724
Jul ’24HK$1.97
HK$2.75
+39.3%
19.9%HK$3.30HK$2.03HK$3.204
Jun ’24HK$2.38
HK$3.43
+44.1%
8.6%HK$3.84HK$3.15HK$3.573
May ’24HK$2.66
HK$3.43
+28.9%
8.6%HK$3.84HK$3.15HK$2.993
Apr ’24HK$2.49
HK$3.31
+32.9%
10.0%HK$3.84HK$2.95HK$2.684
Mar ’24HK$2.58
HK$3.39
+31.5%
9.8%HK$3.84HK$2.95HK$3.275
Feb ’24HK$2.85
HK$3.39
+19.0%
9.8%HK$3.84HK$2.95HK$3.105
Jan ’24HK$2.49
HK$3.39
+36.2%
9.8%HK$3.84HK$2.95HK$2.885
Dec ’23HK$2.62
HK$3.39
+29.5%
9.8%HK$3.84HK$2.95HK$2.825
Nov ’23HK$2.22
HK$3.39
+52.8%
9.8%HK$3.84HK$2.95HK$2.525

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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