TSEC:2002

Stock Analysis Report

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Executive Summary

China Steel Corporation manufactures and sells steel products primarily in Taiwan, Vietnam, Malaysia, China, India, and internationally.


Snowflake Analysis

Moderate growth potential with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2002 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

2002

4.4%

TW Metals and Mining

4.7%

TW Market


1 Year Return

-13.8%

2002

-13.2%

TW Metals and Mining

10.4%

TW Market

Return vs Industry: 2002 matched the TW Metals and Mining industry which returned -13.2% over the past year.

Return vs Market: 2002 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

2002IndustryMarket
7 Day6.1%4.4%4.7%
30 Day7.4%6.1%7.0%
90 Day-8.3%-5.4%1.9%
1 Year-10.2%-13.8%-9.6%-13.2%15.4%10.4%
3 Year-3.6%-13.8%3.0%-7.7%26.2%11.5%
5 Year2.2%-14.3%12.5%-5.2%50.5%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Steel undervalued compared to its fair value and its price relative to the market?

111.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2002 (NT$21) is trading above our estimate of fair value (NT$5.37)

Significantly Below Fair Value: 2002 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2002 is poor value based on its PE Ratio (111.4x) compared to the Metals and Mining industry average (23x).

PE vs Market: 2002 is poor value based on its PE Ratio (111.4x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2002 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 2002 is overvalued based on its PB Ratio (1.1x) compared to the TW Metals and Mining industry average (1x).


Next Steps

Future Growth

How is China Steel forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

85.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2002's forecast earnings growth (85.8% per year) is above the savings rate (0.9%).

Earnings vs Market: 2002's earnings (85.8% per year) are forecast to grow faster than the TW market (15.2% per year).

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

Revenue vs Market: 2002's revenue (1.2% per year) is forecast to grow slower than the TW market (7.4% per year).

High Growth Revenue: 2002's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2002's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

  • Explore growth companies in the Materials industry.

Past Performance

How has China Steel performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2002 has a large one-off gain of NT$921.6M impacting its March 31 2020 financial results.

Growing Profit Margin: 2002's current net profit margins (0.8%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 2002's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: 2002's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2002 had negative earnings growth (-87.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-44.1%).


Return on Equity

High ROE: 2002's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is China Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 2002's short term assets (NT$159.8B) do not cover its short term liabilities (NT$165.4B).

Long Term Liabilities: 2002's short term assets (NT$159.8B) do not cover its long term liabilities (NT$166.7B).


Debt to Equity History and Analysis

Debt Level: 2002's debt to equity ratio (73.6%) is considered high.

Reducing Debt: 2002's debt to equity ratio has reduced from 80.9% to 73.6% over the past 5 years.

Debt Coverage: 2002's debt is not well covered by operating cash flow (16%).

Interest Coverage: 2002's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

What is China Steel's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2002's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 2002's dividend (2.38%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: 2002's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2002's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (265.3%), 2002's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2002's dividends in 3 years are forecast to be covered by earnings (79% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Shyi-Chin Wang

0.75

Tenure

Mr. Shyi-Chin Wang is the President of China Steel Corporation since September 30, 2019. Mr. Wang was an Executive Vice President of China Steel Corp. since October 1, 2015 until September 30, 2019 and ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Shyi-Chin Wang
President & Director0.75yrno data0.0018% NT$5.8m
Yueh-Kun Yang
VP of Finance Division & Director1.67yrsno data0.00021% NT$679.8k
Kai-Ching Huang
General Manager of Accounting Departmentno datano datano data
Hwang Yie-Shing
Vice President of Technology Division0.42yrno datano data
Chiu-Po Chang
Vice President of Administration Division2.67yrsno data0.00086% NT$2.8m
Chien-Chih Hwang
Executive VP & Director1.42yrsno data0.00022% NT$712.1k
Chao-Hsu Lin
Senior Vice President0.83yrno datano data
Pai-Chien Huang
Company Secretary & VP of Corporate Planning Division1.25yrsno datano data
Hung-Tai Chou
Assistant VP of Finance Division & GM of Finance Department1.92yrsno datano data

1.0yrs

Average Tenure

Experienced Management: 2002's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shyi-Chin Wang
President & Director0.75yrno data0.0018% NT$5.8m
Yueh-Kun Yang
VP of Finance Division & Director1.67yrsno data0.00021% NT$679.8k
Chien-Chih Hwang
Executive VP & Director1.42yrsno data0.00022% NT$712.1k
Cheng-I Weng
Director19.08yrsno data0.000060% NT$194.2k
Fong-Sheng Wu
Director4yrsno datano data
Chao-Tung Wong
Chairman of the Board3.67yrsno data0.0077% NT$25.0m
Shyue-Bin Chang
Independent Director4yrsno datano data
Min-Hsiung Hon
Independent Director4yrsno data0.000030% NT$97.1k
Lan-Feng Kao
Independent Director4yrsno data0.000030% NT$97.1k
Chun-Sheng Chen
Director2.42yrsno data0.00013% NT$420.8k

4.0yrs

Average Tenure

Experienced Board: 2002's board of directors are considered experienced (4 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

China Steel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Steel Corporation
  • Ticker: 2002
  • Exchange: TSEC
  • Founded: 1971
  • Industry: Steel
  • Sector: Materials
  • Market Cap: NT$323.696b
  • Shares outstanding: 15.41b
  • Website: https://www.csc.com.tw

Number of Employees


Location

  • China Steel Corporation
  • 1 Chung-Kang Road
  • Siaogang District
  • Kaohsiung
  • 81233
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2002TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDJan 1992
2002ATSEC (Taiwan Stock Exchange)PFD STK TWD10TWTWDJan 1992
CISX.FOTCPK (Pink Sheets LLC)GDR REG SUSUSDOct 1993
CHSTCBDL (Bourse de Luxembourg)GDR REG SLUUSDOct 1993
CNSDLSE (London Stock Exchange)GDR REG SGBUSDOct 1993
CNSBST (Boerse-Stuttgart)GDR REG SDEEUROct 1993

Biography

China Steel Corporation manufactures and sells steel products primarily in Taiwan, Vietnam, Malaysia, China, India, and internationally. The company offers steel plates for construction structures, shipbuilding, bridges, oil country tabular goods, steel structures, pressure vessels, storage tanks, truck chassis, general structural components, and boilers; and steel bars and wire rods for bolts and nuts general and machine structures, cold forging, hot forging, tire cords, umbrella ribs, chains, hand tools and welding electrodes. It also provides hot-rolled coils and sheets for Steel pipes and tubes, vehicle parts, containers, pressure vessels, jacks, cold-rolled and galvanized steels, light steel frame and formed processed products; and cold-rolled coils for automobile panels home appliances, drums, steel pipes and tubes, galvanized steels, and general hardware. In addition, the company offers color coils for roofing and walling, appliances, kitchenware, furniture, transportation vehicle materials, and interior decoration materials; electrical steel coils for manufacturing motors, transformers, stabilizers, relays, and cores of electric panels; electro-galvanized coils; and hot-dip galvanized coils. Further, it engages in the mechanical, communications, and electrical engineering activities; and ocean freight forwarding and bulk shipping transportation activities. Additionally, the company offers titanium-nickel, aluminum, and other non-ferrous metals, machinery and equipment, magnetic materials, specialty chemicals, ferric iron oxide, electronic ceramics; designs and sells IT hardware and software; and introduces and develops biology, as well as develops, sells, and rents land and commercial real estate properties. It also provides steel product agency and trading, guard security and system security, and management consultancy services; and generates solar power. The company was founded in 1971 and is headquartered in Kaohsiung, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 14:39
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.