China Oriental Group Co Ltd (HK:0581)
:0581
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China Oriental Group Co
(0581)
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Rating:47Neutral
Price Target:
HK$1.50
▲(11.94% Upside)
Action:Reiterated
Date:04/27/26
The score is driven mainly by a still-fragile fundamental recovery (thin margins, low ROE, and inconsistent free cash flow) and weak technical positioning (price below key moving averages with negative MACD). Valuation further pressures the score due to a high P/E alongside a low dividend yield.
Positive Factors
Strong 2025 revenue growth
A near‑30% top‑line expansion in 2025 reflects meaningful demand recovery and scale gains. Sustained revenue growth can underpin longer‑term operational leverage, improve bargaining power with suppliers, and provide a platform to rebuild margins and reinvest in capacity over several quarters.
Negative Factors
Very thin profitability margins
Margins at single‑digit gross and near‑zero net levels leave little buffer for raw‑material or energy cost swings common in steel. Persistently thin margins constrain retained earnings, reduce resilience to cyclical downturns, and limit the company’s ability to organically fund strategic investments over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2025 revenue growth
A near‑30% top‑line expansion in 2025 reflects meaningful demand recovery and scale gains. Sustained revenue growth can underpin longer‑term operational leverage, improve bargaining power with suppliers, and provide a platform to rebuild margins and reinvest in capacity over several quarters.
Read all positive factors
China Oriental Group Co (0581) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.80B
Dividend Yield0.76%
Average Volume (3M)2.63M
Price to Earnings (P/E)19.6
Beta (1Y)0.75
Revenue Growth-5.88%
EPS Growth49.77%
CountryHK
Employees11,800
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.04
Shares Outstanding3,722,569,000
10 Day Avg. Volume3,475,600
30 Day Avg. Volume2,625,849
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.20
Price to Sales (P/S)0.11
P/FCF Ratio-84.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.54Price Target Upside14.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)HK$45.40B
China Oriental Group Co Business Overview & Revenue Model
Company Description
China 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 st...
How the Company Makes Money
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China Oriental Group Co Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.41B | 42.96B | 46.26B | 48.62B | 51.96B |
| Gross Profit | 2.49B | 1.77B | 717.29M | 1.75B | 4.09B |
| EBITDA | 2.04B | 1.70B | 1.50B | 1.61B | 4.21B |
| Net Income | 224.96M | 149.11M | -159.69M | 807.51M | 2.49B |
Balance Sheet | |||||
| Total Assets | 50.67B | 50.08B | 50.03B | 48.02B | 52.12B |
| Cash, Cash Equivalents and Short-Term Investments | 13.87B | 6.88B | 7.88B | 6.71B | 11.50B |
| Total Debt | 17.93B | 16.43B | 15.50B | 13.56B | 14.17B |
| Total Liabilities | 25.61B | 25.12B | 25.05B | 22.74B | 29.00B |
| Stockholders Equity | 22.38B | 22.29B | 22.27B | 22.58B | 22.55B |
Cash Flow | |||||
| Free Cash Flow | -52.09M | 1.25B | -1.27B | -2.42B | -574.84M |
| Operating Cash Flow | 1.42B | 2.60B | 246.62M | -301.11M | 835.90M |
| Investing Cash Flow | -2.65B | -1.06B | -674.00M | 73.18M | -2.83B |
| Financing Cash Flow | 1.51B | -1.65B | 1.94B | -2.34B | 3.16B |
China Oriental Group Co Technical Analysis
Negative
1.34
Price Trends
1.34
Negative
1.37
Negative
1.43
Negative
Market Momentum
>-0.01
Negative
46.71
Neutral
46.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0581, the sentiment is Negative. The current price of 1.34 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.34, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0581.
China Oriental Group Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | HK$10.35B | 18.84 | 5.40% | 1.90% | -2.31% | 12.27% | |
48 Neutral | HK$25.93B | 101.23 | -0.09% | ― | -4.43% | 99.48% | |
48 Neutral | HK$7.01B | 36.53 | 10.15% | 1.06% | 2.96% | -5.13% | |
47 Neutral | HK$4.80B | 19.61 | 0.70% | 0.76% | -5.88% | 49.77% | |
44 Neutral | HK$13.39B | -12.31 | -18.53% | ― | -13.27% | 4.42% | |
43 Neutral | HK$20.37B | -2.14 | -11.13% | ― | -7.68% | 15.78% |
* Basic Materials Sector Average
HK:0581
China Oriental Group Co
1.29
0.08
6.61%
HK:0347
Angang Steel Co
1.35
-0.30
-18.18%
HK:0323
Maanshan Iron & Steel Co
2.16
0.56
35.00%
HK:0826
Tiangong International Co. Ltd.
3.80
1.94
104.19%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
1.06
0.22
26.19%
HK:3788
China Hanking Holdings Ltd.
3.13
1.90
154.47%
China Oriental Group Co Corporate Events
China Oriental Discloses Mixed First-Quarter 2026 Results at Key Power Equipment Subsidiary
Apr 29, 2026
China Oriental Group Company Limited has disclosed the unaudited consolidated financial results of its Shanghai-listed subsidiary Qingdao Huijintong Power Equipment for the three months ended 31 March 2026, prepared under Chinese accounting standa...
China Oriental Sets AGM to Approve Dividends, Board Mandates and Share Issue Authority
Apr 23, 2026
China Oriental Group Co has convened its annual general meeting for 10 June 2026 in Hong Kong, where shareholders will be asked to adopt the audited consolidated financial statements for the year ended 31 December 2025 and approve a final dividend...
China Oriental Boosts 2025 Profit and Margins Despite Revenue Decline
Mar 30, 2026
China Oriental Group reported higher sales volumes of self-manufactured steel in 2025, with tonnage rising 9.6% even as overall revenue slipped 5.9% to RMB 40.41 billion due to weaker prices and declines in power equipment and trading businesses. ...
China Oriental Group Proposes Final 2025 Dividend of HKD 0.02 per Share
Mar 30, 2026
China Oriental Group Company Limited has proposed a final ordinary cash dividend of HKD 0.02 per share for the financial year ended 31 December 2025, reflecting its ongoing practice of returning capital to shareholders. The dividend, pending share...
China Oriental Group Declares HKD 0.05 Special Dividend for 2025
Mar 30, 2026
China Oriental Group Company Limited has declared a special cash dividend of HKD 0.05 per share for the financial year ended 31 December 2025. The dividend, payable in Hong Kong dollars, underlines the company’s focus on shareholder returns ...
China Oriental Discloses Profit Drop at Key Power Equipment Subsidiary HJT
Mar 27, 2026
China Oriental Group Company Limited has disclosed the audited consolidated results of its 40.5%-owned subsidiary, Qingdao Huijintong Power Equipment Co., Ltd., for the year ended 31 December 2025, prepared under PRC accounting standards. HJT, a S...
China Oriental flags 20–40% profit rise for 2025 despite weak steel market
Mar 23, 2026
China Oriental Group has issued a positive profit alert, saying it expects net profit for the year ended 31 December 2025 to rise to between RMB270 million and RMB315 million, up roughly 20% to 40% from RMB225 million a year earlier. The company a...
China Oriental Schedules Board Meeting to Approve 2025 Annual Results and Consider Dividend
Mar 13, 2026
China Oriental Group Company Limited has scheduled a board meeting for 30 March 2026 to review and approve the annual results for the financial year ended 31 December 2025. The board will also consider whether to recommend a final dividend, a deci...
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.