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China Oriental Group Co Ltd (HK:0581)
:0581

China Oriental Group Co (0581) AI Stock Analysis

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HK:0581

China Oriental Group Co

(0581)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$1.50
▲(11.94% Upside)
The overall stock score of 54 reflects significant challenges in financial performance, particularly in revenue growth and cash flow stability. Technical analysis indicates a bearish trend, while valuation suggests potential overvaluation. The absence of earnings call and corporate events data limits further insights.

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

China Oriental Group Co Business Overview & Revenue Model

Company DescriptionChina Oriental Group Company Limited manufactures and sells iron and steel products for downstream steel manufacturers in the People's Republic of China. It operates through Iron and Steel, and Real Estate segments. The company offers H-section steel products for use in non-residential construction and infrastructure projects; strips and strip products; cold rolled sheets for use in manufacturing home electric appliances, hardware, pipes, etc.; galvanized sheets for production of civil-purpose sheets; billets for use as substrate in downstream steel products; and rebars for use in residential and non-residential projects. It also engages in the trade of steel, and iron ore and related products; leasing and financial leasing business; import and export of goods and technology; purchase and sale of ferrous metal and coke; development and sale of real estate properties; environmental protection engineering activities; non-metallic ore mining and trading; recycling of steel and waste materials; manufacture and sale of power transmission facilities; manufacturing of casting products; and research and development of recycling and energy-saving technology, as well as other recycling and construction engineering business. In addition, the company provides equipment maintenance, publication, construction project management, wholesale trade, asset management, logistics, commercial management, hotel and catering, cargo transit agency, and investment and management services; and architectural design, sale, and installation services, commercial consulting, technical advisory and software development, technology promotion, and new material technology and building engineering design services. Further, it offers factoring, capital market, and calligraphy and art training services; waste resources utilization services; produces and sells electricity; and sells metal materials and renewable resources. The company was incorporated in 2003 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyChina Oriental Group generates revenue primarily through the production and sale of its steel products. The company has established a robust revenue model driven by its extensive production capabilities and a strong market presence. Key revenue streams include the sale of hot-rolled and cold-rolled steel products, wire rods, and other steel-related products both domestically and internationally. Additionally, the company benefits from its iron ore mining operations, which provide a critical raw material for its steel production, thereby reducing costs and enhancing profit margins. Significant partnerships with various construction and manufacturing firms also contribute to its earnings, as these relationships facilitate steady demand for its products. Market conditions, pricing strategies, and global demand for steel are crucial factors that influence the company’s overall financial performance.

China Oriental Group Co Financial Statement Overview

Summary
China Oriental Group Co faces challenges in revenue growth and profitability, with increased leverage posing financial risks. While there are signs of operational recovery, particularly in EBITDA margins, consistent free cash flow generation remains a critical concern.
Income Statement
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
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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.32B42.96B46.26B48.62B51.96B39.15B
Gross Profit1.49B1.77B717.29M1.75B4.09B2.30B
EBITDA1.35B1.70B1.50B1.61B4.21B2.56B
Net Income156.62M149.11M-159.69M807.51M2.49B1.59B
Balance Sheet
Total Assets49.47B50.08B50.03B48.02B52.12B44.52B
Cash, Cash Equivalents and Short-Term Investments9.71B6.88B7.88B6.71B11.50B9.66B
Total Debt15.17B16.43B15.50B13.56B14.17B11.68B
Total Liabilities24.48B25.12B25.05B22.74B29.00B23.31B
Stockholders Equity22.33B22.29B22.27B22.58B22.55B20.68B
Cash Flow
Free Cash Flow1.00B1.25B-1.27B-2.42B-574.84M-1.15B
Operating Cash Flow1.60B2.60B246.62M-301.11M835.90M-116.84M
Investing Cash Flow-861.46M-1.06B-674.00M73.18M-2.83B-4.11B
Financing Cash Flow-524.46M-1.65B1.94B-2.34B3.16B3.02B

China Oriental Group Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.34
Price Trends
50DMA
1.32
Positive
100DMA
1.41
Negative
200DMA
1.39
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.12
Neutral
STOCH
63.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0581, the sentiment is Neutral. The current price of 1.34 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.32, and below the 200-day MA of 1.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0581.

China Oriental Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$8.97B21.985.44%1.90%-10.53%13.93%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
54
Neutral
$4.99B17.941.16%0.76%-14.11%
54
Neutral
HK$7.81B38.7911.79%1.06%-6.73%-21.30%
49
Neutral
HK$31.90B-8.84-8.13%-10.10%10.40%
47
Neutral
HK$14.57B-4.80-12.42%-14.20%8.19%
41
Neutral
HK$25.23B-3.97-8.39%-9.09%34.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0581
China Oriental Group Co
1.34
0.37
37.86%
HK:0347
Angang Steel Co
1.87
0.51
37.50%
HK:0323
Maanshan Iron & Steel Co
2.53
0.95
60.23%
HK:0826
Tiangong International Co. Ltd.
3.29
1.56
89.63%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
1.21
0.38
45.78%
HK:3788
China Hanking Holdings Ltd.
3.84
3.07
398.70%

China Oriental Group Co Corporate Events

China Oriental Further Lifts Stake in Jiangsu Shentong Valve Maker
Dec 31, 2025

China Oriental Group’s subsidiary Jinxi Heavy Industry has further increased the group’s stake in valve maker Jiangsu Shentong through an on‑market purchase on the Shenzhen Stock Exchange, acquiring 1.6 million shares for about RMB25.33 million in cash from independent third parties. The move lifts China Oriental’s holding in Jiangsu Shentong from 1.80% to 2.11%, deepening its financial exposure to a profitable supplier of specialised valves used in metallurgy, nuclear energy, petrochemicals and other energy sectors, and potentially strengthening its upstream industrial links without impacting its cash position significantly, as the acquisition is fully funded by internal resources.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Renews Oriental Sheet Piling Steel Supply Deal with RMB210 Million Cap for 2026
Dec 30, 2025

China Oriental Group Company Limited has renewed its long-standing sales arrangement with Oriental Sheet Piling, a connected party ultimately controlled by ArcelorMittal, by entering into a Fourth Renewal OSP Framework Agreement for the supply of steel products from 1 January 2026 to 31 December 2026. The new one-year framework sets an annual transaction cap of RMB210 million, derived from historical volumes, anticipated demand, the group’s production capacity, and expected movements in steel and raw material prices; the deal is classified as a continuing connected transaction under Hong Kong listing rules, requiring disclosure and annual review but exempt from circular and shareholder approval. The board, excluding two directors with interests in ArcelorMittal who abstained from voting, considers the agreement to be on normal commercial terms and in the interests of the company and its shareholders, underscoring the strategic importance of Oriental Sheet Piling as a recurring customer and providing some visibility on 2026 sales within the group’s connected-party portfolio.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Raises Stake Slightly in Shenzhen-Listed Valve Maker Jiangsu Shentong
Dec 23, 2025

China Oriental Group’s subsidiary Jinxi Heavy Industry has modestly increased the group’s strategic stake in Shenzhen-listed valve maker Jiangsu Shentong, purchasing 125,500 shares on the Shenzhen Stock Exchange for about RMB1.92 million in cash, funded from internal resources. Following this on-market transaction, which was executed at prevailing market prices with independent third-party sellers, the group’s holding in Jiangsu Shentong has risen from approximately 1.77% to 1.80% of the company’s issued share capital, furthering a series of incremental acquisitions disclosed earlier in December and marginally deepening China Oriental’s exposure to a profitable industrial supplier whose specialised valves serve metallurgical, nuclear, petrochemical and broader energy industries in China.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Lifts Stake in Valve Maker Jiangsu Shentong to 1.77% via On-Market Purchase
Dec 22, 2025

China Oriental Group’s subsidiary Jinxi Heavy Industry has further increased the group’s exposure to the industrial equipment supply chain by raising its stake in Shenzhen-listed valve producer Jiangsu Shentong to about 1.77%. Jinxi acquired an additional 2 million Jiangsu Shentong shares on the Shenzhen Stock Exchange for roughly RMB30.91 million in cash, funded entirely from internal resources, following a series of earlier purchases this month. The on-market transaction, conducted at prevailing market prices, involves independent sellers and underscores China Oriental’s continued strategic interest in Jiangsu Shentong, whose specialised valves serve key sectors such as metallurgy, nuclear energy, petrochemicals and other energy industries, and which has delivered rising net profits and substantial net assets in recent years.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Expands Stake in Jiangsu Shentong with Strategic Acquisition
Dec 11, 2025

China Oriental Group Company Limited, through its subsidiary Jinxi Heavy Industry, has acquired an additional 2,950,000 shares of Jiangsu Shentong, increasing its stake to 1.38%. This acquisition, valued at approximately RMB43.45 million, was funded by the company’s internal resources. Jiangsu Shentong specializes in the production of special valves used in industries such as metallurgy, nuclear energy, and petrochemicals. The acquisition is part of China Oriental’s strategy to strengthen its position in the market by expanding its investment in companies with complementary industrial applications.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Group Strengthens Ties with Jiangsu Shentong Through Strategic Acquisition
Dec 9, 2025

China Oriental Group Company Limited announced a strategic acquisition of shares in Jiangsu Shentong Valve Co., Ltd., aiming to strengthen its commercial relationship and facilitate deeper cooperation. This acquisition is expected to provide financial benefits through potential appreciation in share value and dividends, while also supporting the company’s strategic initiatives and technological development.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Group Expands Stake in Jiangsu Shentong
Dec 2, 2025

China Oriental Group Co, through its subsidiary Jinxi Heavy Industry, has acquired 3,753,500 shares of Jiangsu Shentong, increasing its stake to 0.80% of the company. This acquisition, amounting to approximately RMB52.0 million, was funded by internal resources and executed on the Shenzhen Stock Exchange. Jiangsu Shentong, known for its production of special valves used in industries such as metallurgy and nuclear energy, reported a net profit of RMB294.2 million after taxation in 2024, highlighting its stable financial performance.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Group Reports Q3 2025 Steel Production Data
Nov 18, 2025

China Oriental Group Company Limited announced its unaudited key operating data for the three months ended 30 September 2025. The company reported a sales volume of approximately 2.1 million tonnes of self-manufactured steel products and a gross profit per tonne ranging from RMB 200 to 250. The operating profit after net finance costs was approximately RMB 403 million. This data is preliminary and has not been audited, and stakeholders are advised to exercise caution when interpreting these figures.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

China Oriental Reports Decline in Subsidiary’s Nine-Month Financial Results
Oct 30, 2025

China Oriental Group Company Limited announced the unaudited consolidated financial results for its subsidiary, Qingdao Huijintong Power Equipment Co., Ltd., for the nine months ending September 30, 2025. The results showed a decrease in total operating income to RMB 2.9 billion from RMB 3.2 billion in the same period last year, with net profit also declining to RMB 86.3 million from RMB 109.2 million. This financial performance may impact the company’s market positioning and stakeholder interests as it reflects a challenging period for its operations.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

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.Date of analysis: Oct 17, 2025