China Oriental Group Co (0581) AI Stock Analysis

• Market Cap: $5.70B
• Dividend Yield: 26.31%
• Average Volume (3M): 31.30M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.67
• Revenue Growth: -8.84%
• EPS Growth: N/A
• Country: HK
• Employees: 11,800
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 3,722,569,000
• 10 Day Avg. Volume: 81,728,700
• 30 Day Avg. Volume: 31,301,855
• PEG Ratio: 0.28
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.32
• 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: 63 Neutral
• Price Target: HK$1.50 ▼(-1.96%Downside)

The overall stock score of 63 is primarily influenced by the technical analysis, which shows strong bullish signals, albeit with caution due to high RSI levels. Financial performance is a concern due to declining revenue and profitability, increased leverage, and poor cash flow generation. The valuation presents a mixed picture with high P/E ratio offset by an attractive dividend yield.

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 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 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: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1.53 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.25, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 79.75 is Negative, neither overbought nor oversold. The STOCH value of 57.28 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0581	63 Neutral	$5.70B	35.25	0.67%	26.31%	-8.84%	―
Sector *	44 Neutral	C$992.05M	-6.72	-13.73%	2.53%	17.45%	-32.50%
ANGGF		$3.11B	―	-12.08%	―	―	―
ESHDF		$39.31M	―	-90.66%	―	―	―
MAANF		$3.28B	―	-17.87%	―	―	―
CGP		€1.44B	―	-16.73%	―	―	―
1050	64 Neutral	HK$1.76B	8.58	19.74%	11.49%	29.30%	-1.21%

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.

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

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.