China Oriental Group Co (0581) AI Stock Analysis

• Market Cap: $5.25B
• Dividend Yield: 0.75%
• Average Volume (3M): 8.78M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.65
• Revenue Growth: -14.11%
• EPS Growth: N/A
• Country: HK
• Employees: 11,800
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.05
• Shares Outstanding: 3,722,569,000
• 10 Day Avg. Volume: 9,301,500
• 30 Day Avg. Volume: 8,777,166
• PEG Ratio: -0.14
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 3.21
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 4.92
• 1Y Price Target: $1.48
• Price Target Upside: 16.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$1.50 ▲(18.11% Upside)

The overall stock score reflects significant financial challenges, including declining revenue and profitability, and high leverage. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

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 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 Money

China Oriental Group Co generates revenue through the sale of its steel products, which are primarily utilized in the construction, machinery, and infrastructure sectors. The company's revenue model is centered around manufacturing and distributing a wide range of steel products, including H-section steel and cold rolled sheets. These products are essential for construction and industrial applications, providing the company with a steady demand base. Additionally, strategic partnerships and supply agreements with major construction firms and government projects play a significant role in driving sales and expanding its market reach. The company's ability to produce high-quality steel products at competitive prices also contributes to its profitability.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.96B	46.26B	48.62B	51.96B	39.15B
Gross Profit	1.77B	717.29M	1.75B	4.09B	2.30B
EBITDA	1.70B	1.50B	1.61B	4.21B	2.56B
Net Income	149.11M	-159.69M	807.51M	2.49B	1.59B
Balance Sheet
Total Assets	50.08B	50.03B	48.02B	52.12B	44.52B
Cash, Cash Equivalents and Short-Term Investments	7.24B	8.11B	6.96B	12.00B	8.95B
Total Debt	16.43B	15.50B	13.56B	14.17B	11.61B
Total Liabilities	25.12B	25.05B	22.74B	29.00B	23.31B
Stockholders Equity	22.29B	22.27B	22.58B	22.55B	20.68B
Cash Flow
Free Cash Flow	1.25B	-1.27B	-2.42B	-574.84M	-1.15B
Operating Cash Flow	2.60B	246.62M	-301.11M	835.90M	-116.84M
Investing Cash Flow	-1.06B	-674.00M	73.18M	-2.83B	-4.11B
Financing Cash Flow	-1.65B	1.94B	-2.34B	3.16B	3.02B

China Oriental Group Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.27 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.70, and below the 200-day MA of 1.30, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 26.93 is Positive, neither overbought nor oversold. The STOCH value of 13.52 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0826	69 Neutral	7.08B	17.57	5.06%	2.21%	-10.53%	13.93%
3788	65 Neutral	7.11B	32.93	12.61%	1.10%	-6.73%	-21.30%
0323	54 Neutral	28.71B	-4.91	-20.03%	―	-17.60%	-1421.08%
0581	50 Neutral	$5.25B	18.88	1.16%	0.75%	-14.11%	―
0347	44 Neutral	25.19B	-3.37	-14.94%	―	-11.19%	-21.13%
1053	42 Neutral	14.64B	-4.25	0.00%	―	-24.68%	-51.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

China Oriental Group Co Corporate Events

China Oriental Group Co Reports Mixed Interim Results with Profit Surge

China Oriental Group Co reported its interim results for the six months ending June 30, 2025, showing a mixed performance. The company experienced a 5.5% increase in total sales volume, driven by a 6.5% rise in self-manufactured steel products, despite a significant drop in trading volumes. Revenue decreased by 12% to RMB 19.86 billion, with notable declines in sales of self-manufactured steel products and trading of raw materials. However, gross profit surged by 38.1% to RMB 1.243 billion, and profit before income tax rose by 194.2% to RMB 421 million, indicating improved operational efficiency. The company’s financial health showed slight improvements, with a reduced debt-to-capital ratio and increased return on equity.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$2.00 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 H1 2025 Financial Results for Subsidiary

China Oriental Group Co., Ltd. announced the unaudited financial results of its subsidiary, Qingdao Huijintong Power Equipment Co., Ltd., for the first half of 2025. The results show a slight decrease in operating income compared to the previous year, with total operating income at RMB 2,000 million and net profit at RMB 63.88 million. Despite the decline in operating income, the company managed to increase its net profit, indicating improved operational efficiency. This financial performance may impact the company’s market positioning and stakeholder confidence positively.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$2.00 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 Expects Significant Profit Growth in 2025

China Oriental Group Company Limited has announced a positive profit alert, expecting a net profit of not less than RMB220 million for the first half of 2025, marking an increase of at least 70% compared to the same period in 2024. This significant profit growth is attributed to a decline in raw material prices and the company’s effective lean management strategy, which has optimized procurement and reduced costs per tonne of steel.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$2.00 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 Schedules Board Meeting to Review Interim Results

China Oriental Group Company Limited has announced that its board of directors will meet on 27 August 2025 to consider and approve the interim results for the first half of 2025, as well as to discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting its market positioning and stakeholder interests.

China Oriental Group Co Forms Nomination Committee to Enhance Board Diversity

China Oriental Group Co has established a Nomination Committee to ensure a balanced and diverse board of directors. The committee is tasked with formulating a board diversity policy, assessing board composition, and making recommendations on director appointments to align with the company’s corporate strategy.