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China Oriental Group Co (HK:0581)
:0581

China Oriental Group Co (0581) AI Stock Analysis

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HK

China Oriental Group Co

(OTC:0581)

Rating:47Neutral
Price Target:
China Oriental Group Co's overall stock score is hindered by weak financial performance, with challenges in revenue growth, profitability, and cash flow generation. The technical indicators show a bearish sentiment, with the stock trading below key moving averages. Valuation concerns arise from a high P/E ratio amidst negative net income and no dividend yield, reducing its attractiveness to investors.

China Oriental Group Co (0581) vs. iShares MSCI Hong Kong ETF (EWH)

China Oriental Group Co Business Overview & Revenue Model

Company DescriptionChina Oriental Group Co Ltd (0581) is a leading Chinese company primarily engaged in the production and sale of iron and steel products. The company operates in the steel manufacturing sector, providing a wide range of products including H-section steel, cold rolled sheets, galvanized sheets, and billets. With its headquarters in Hong Kong, China Oriental Group serves various industries such as construction, machinery manufacturing, and automotive through its extensive product portfolio.
How the Company Makes MoneyChina Oriental Group Co generates revenue primarily through the sale of its iron and steel products. The company's key revenue streams include the production and sale of H-section steel, which is extensively used in construction and infrastructure projects, and other steel products that cater to diverse industrial needs. China Oriental collaborates with various suppliers and maintains strong relationships with customers in the construction and manufacturing sectors, contributing significantly to its earnings. The company benefits from its strategic location and operational efficiency, allowing it to maintain a competitive edge in the steel industry.

China Oriental Group Co Financial Statement Overview

Summary
China Oriental Group Co is struggling with revenue growth and profitability. The balance sheet shows increased leverage, indicating financial risk. While there are signs of operational recovery in EBITDA margins, the negative free cash flow and inconsistent cash flow generation are concerning.
Income Statement
55
Neutral
China Oriental Group Co has experienced fluctuating revenue, with a decline over the past three years. The gross profit margin has decreased significantly from its 2019 levels, indicating pressure on core profitability. The company posted negative EBIT and net income in 2023, highlighting challenges in maintaining profitability. The EBITDA margin improvement in 2024 suggests some recovery in operational efficiency, although the overall profit margins remain low.
Balance Sheet
60
Neutral
The company's balance sheet shows a stable equity base, with stockholders' equity remaining fairly consistent. The debt-to-equity ratio has increased over the years, pointing to higher leverage, which could pose potential financial risks. However, the equity ratio remains relatively healthy, indicating a balanced asset structure.
Cash Flow
45
Neutral
China Oriental Group Co's cash flow situation is concerning, with negative free cash flow reported in most years, indicating cash outflows exceeding inflows. Operating cash flow has been inconsistent, with significant improvements needed for sustainable growth. The absence of recent data for 2024 limits a complete assessment of the current cash flow stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
42.96B46.26B48.62B51.96B39.15B
Gross Profit
1.77B717.29M1.75B4.09B2.30B
EBIT
393.02M-112.48M363.56M3.11B1.42B
EBITDA
1.70B1.50B1.61B4.21B2.56B
Net Income Common Stockholders
149.11M-159.69M807.51M2.49B1.59B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.24B8.11B6.96B12.00B8.95B
Total Assets
50.08B50.03B48.02B52.12B44.52B
Total Debt
16.43B15.50B13.56B14.17B11.61B
Net Debt
12.91B11.89B11.44B9.55B8.12B
Total Liabilities
25.12B25.05B22.74B29.00B23.31B
Stockholders Equity
22.29B22.27B22.58B22.55B20.68B
Cash FlowFree Cash Flow
0.00-1.27B-2.42B-574.84M-1.15B
Operating Cash Flow
0.00246.62M-301.11M835.90M-116.84M
Investing Cash Flow
0.00-674.00M73.18M-2.83B-4.11B
Financing Cash Flow
0.001.94B-2.34B3.16B3.02B

China Oriental Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.31
Price Trends
50DMA
1.24
Positive
100DMA
1.22
Positive
200DMA
1.19
Positive
Market Momentum
MACD
0.02
Positive
RSI
52.76
Neutral
STOCH
42.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0581, the sentiment is Positive. The current price of 1.31 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.24, and above the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0581.

China Oriental Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$1.60B8.0820.43%12.50%29.30%-1.21%
52
Neutral
$26.76B-17.87%-17.35%-278.88%
51
Neutral
$2.04B-1.26-21.09%3.98%2.91%-30.49%
48
Neutral
$22.22B-12.08%-7.61%-25.34%
47
Neutral
HK$4.88B29.950.67%26.31%-8.84%
42
Neutral
€12.12B-16.73%-29.52%-73.10%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0581
China Oriental Group Co
1.31
0.18
16.03%
HK:1050
Karrie International Holdings Limited
0.80
0.16
25.00%
HK:0323
Maanshan Iron & Steel Co
1.96
0.77
64.71%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
0.91
0.28
44.44%
HK:0347
Angang Steel Co
1.66
0.33
24.81%

China Oriental Group Co Corporate Events

China Oriental Group Co Announces 2025 Annual General Meeting Details
Apr 30, 2025

China Oriental Group Co has announced its Annual General Meeting scheduled for June 6, 2025, in Hong Kong. The meeting will address several key issues, including the adoption of the audited financial statements for 2024, the declaration of a final and special dividend, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, a resolution will be considered to authorize the directors to issue and deal with additional shares, with specific conditions outlined for such actions.

China Oriental Group’s Subsidiary HJT Reports Stable Q1 2025 Financial Results
Apr 29, 2025

China Oriental Group Company Limited announced the unaudited consolidated financial results of its subsidiary, Qingdao Huijintong Power Equipment Co., Ltd., for the first quarter of 2025. HJT reported a total operating income of RMB 837.4 million, with a net profit of RMB 15.8 million, indicating a stable financial performance. The results suggest a slight increase in operating income and net profit compared to the same period last year, reflecting steady growth in the power equipment sector.

China Oriental Group Co Reports 2024 Financial Results with Strong Profit Recovery
Mar 27, 2025

China Oriental Group Co announced its 2024 annual results, revealing a decline in sales volume and revenue for self-manufactured steel products and trading of steel products. However, the company saw significant improvements in gross profit, EBITDA, and net profit, with a notable increase in gross profit per tonne for self-manufactured steel products. The company declared a final and special dividend, reflecting a positive return on equity and an adjusted profit surge, indicating a strong financial recovery and potential growth opportunities.

China Oriental Group Announces Final Dividend for 2024
Mar 27, 2025

China Oriental Group Company Limited has announced a final cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend will be paid on August 8, 2025, following shareholder approval on June 6, 2025, with the ex-dividend date set for June 19, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially impacting investor sentiment and market positioning.

China Oriental Group Announces Special Dividend for 2024
Mar 27, 2025

China Oriental Group Company Limited has announced a special cash dividend of HKD 0.05 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial health and commitment to providing returns to its shareholders, potentially enhancing its market position and investor confidence.

China Oriental Group Reports Strong Financial Performance for 2024
Mar 24, 2025

China Oriental Group Company Limited announced the audited consolidated financial results of its subsidiary, Qingdao Huijintong Power Equipment Co., Ltd., for the year ended December 31, 2024. The results show a significant increase in net profit to RMB 161.57 million from RMB 30.61 million in the previous year, indicating strong operational performance and improved financial health. This financial outcome may enhance the company’s industry positioning and provide positive implications for stakeholders.

China Oriental Group Announces Significant Profit Turnaround
Mar 18, 2025

China Oriental Group Company Limited has announced a positive profit alert, expecting to report a net profit of not less than RMB200 million for the year ended 31 December 2024. This marks a significant turnaround from the previous year’s net loss of approximately RMB196 million. The improvement is attributed to a substantial increase in gross profit by over 120%, despite a decline in the average selling price of steel products due to sluggish demand. The company’s success is largely due to its effective lean management strategy, focusing on cost reduction, efficiency enhancement, and procurement management optimization.

China Oriental Group Schedules Board Meeting to Approve Annual Results
Mar 13, 2025

China Oriental Group Company Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.