Shougang Fushan Flags Sharp 2025 Profit Drop on Weak Coking Coal Prices

Shougang Fushan Resources Group Limited ( (HK:0639) ) has shared an announcement.

Shougang Fushan Resources Group has warned that profit attributable to shareholders for 2025 is expected to fall to between HK$600 million and HK$700 million, down about 53% to 60% from HK$1,494 million in 2024. The decline is mainly driven by a roughly 36% year-on-year drop in the average realized selling price of its clean coking coal, reflecting looser supply-demand conditions in China’s domestic coal market and the impact of its shift to mining lower coal seams, which ended production of higher-priced low-sulfur coal.

In response, the company has strengthened cost control and labor productivity measures to cushion profitability and maintain safe operations. Management notes that market prices for its main clean coking coal product have rebounded about 36% from their June 2025 low and now sit roughly 7% above the 2025 average, a recovery that could support future financial performance, though final audited results are still pending and investors are urged to exercise caution.

The most recent analyst rating on (HK:0639) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Shougang Fushan Resources Group Limited stock, see the HK:0639 Stock Forecast page.

More about Shougang Fushan Resources Group Limited

Shougang Fushan Resources Group Limited is a Hong Kong–incorporated coal producer focused on clean coking coal, supplying the domestic Chinese market. The group operates coal mines that historically produced higher-priced low-sulfur clean coking coal, though a transition to lower coal seams has altered product quality and pricing dynamics.

Average Trading Volume: 9,836,517

Technical Sentiment Signal: Buy

Current Market Cap: HK$16.75B

Learn more about 0639 stock on TipRanks’ Stock Analysis page.