China Oriental Group Co (0581) AI Stock Analysis

• Market Cap: HK$7.11B
• Dividend Yield: 0.53%
• Average Volume (3M): 46.29M
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.71
• Revenue Growth: -8.84%
• EPS Growth: N/A
• Country: HK
• Employees: 11,800
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 3,722,569,000
• 10 Day Avg. Volume: 25,040,000
• 30 Day Avg. Volume: 46,292,366
• PEG Ratio: 0.37
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: HK$2.00 ▼(-0.99%Downside)

The overall score reflects significant challenges in financial performance with high leverage and inconsistent cash flow. Despite strong technical indicators suggesting bullish momentum, the stock's valuation appears stretched, adding risk.

China Oriental Group Co Business Overview & Revenue Model

Company Description

China Oriental Group Co (0581) is a prominent steel manufacturer based in China. The company operates primarily in the production and distribution of iron and steel products, serving various industries such as construction, machinery manufacturing, and infrastructure development. With a diversified portfolio, China Oriental Group Co focuses on the production of H-section steel, cold rolled sheets, galvanized sheets, and other related steel products.

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 is experiencing challenges with declining revenue and profitability over the past three years. The financial health is strained by negative EBIT and net income, increased leverage, and inconsistent cash flow generation. Despite some recovery in EBITDA margins, the overall financial outlook is weakened by these factors.

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: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2.02 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.42, and above the 200-day MA of 1.20, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 80.48 is Negative, neither overbought nor oversold. The STOCH value of 88.27 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3788	65 Neutral	HK$4.72B	23.58	12.77%	1.63%	-19.53%	19.32%
0826	65 Neutral	€5.86B	15.16	5.01%	1.22%	-8.16%	-4.12%
Sector *	59 Neutral	HK$17.38B	4.69	-5.52%	4.31%	-3.57%	-61.41%
0581	58 Neutral	HK$7.11B	44.01	0.67%	0.53%	-8.84%	―
0347	57 Neutral	HK$28.46B	―	-12.08%	―	-7.61%	-25.34%
0323	56 Neutral	HK$27.07B	―	-17.87%	―	-17.35%	-278.88%
1053	42 Neutral	€15.23B	―	-16.73%	―	-29.52%	-73.10%

China Oriental Group Co Corporate Events

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.

China Oriental Group’s AGM Resolutions Passed Successfully

China Oriental Group Company Limited announced that all proposed resolutions at their Annual General Meeting held on June 6, 2025, were passed by shareholders. Key resolutions included the adoption of the 2024 financial statements, declaration of final and special dividends, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility in the steel industry.

China Oriental Group Reports Q1 2025 Steel Sales and Profit

China Oriental Group Company Limited has announced its unaudited key operating data for the first quarter of 2025, reporting a sales volume of approximately 1.8 million tonnes of self-manufactured steel products. The company achieved a gross profit of approximately RMB 100-150 per tonne and an operating profit of approximately RMB 199 million after net finance costs. This update reflects the company’s current operational performance, although the data is preliminary and subject to change, advising shareholders and potential investors to exercise caution.

China Oriental Group Co Announces 2025 Annual General Meeting Details

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.