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Shougang Fushan Resources Group Limited (HK:0639)
:0639
Hong Kong Market
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Shougang Fushan Resources Group Limited (0639) AI Stock Analysis

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HK:0639

Shougang Fushan Resources Group Limited

(0639)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
HK$2.50
▼(-20.38% Downside)
Action:Reiterated
Date:06/27/26
The score is driven by strong financial resilience from an ultra-low-debt balance sheet, partially offset by a clear downshift in profitability and cash generation in 2025. Technicals are the largest near-term risk with a pronounced downtrend (price below all major DMAs and negative MACD). Valuation is helped by a very high dividend yield, but the P/E is only moderate.
Positive Factors
Ultra‑low leverage / strong balance sheet
An exceptionally conservative balance sheet with debt-to-equity near 0.2%–0.3% gives durable financial resilience through commodity cycles. Low leverage reduces interest burden and preserves flexibility to fund operations, capex or dividends during downturns without relying on external financing.
Negative Factors
Margin compression / lower profitability
Sharp compression in gross and net margins materially reduces earnings power and returns on capital. Lower profitability constrains reinvestment capacity, reduces ROE and increases sensitivity to cost inflation or lower realized prices, weakening long‑term shareholder value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Ultra‑low leverage / strong balance sheet
An exceptionally conservative balance sheet with debt-to-equity near 0.2%–0.3% gives durable financial resilience through commodity cycles. Low leverage reduces interest burden and preserves flexibility to fund operations, capex or dividends during downturns without relying on external financing.
Read all positive factors

Shougang Fushan Resources Group Limited (0639) vs. iShares MSCI Hong Kong ETF (EWH)

Shougang Fushan Resources Group Limited Business Overview & Revenue Model

Company Description
Shougang Fushan Resources Group Limited functions as an investment holding company, with its primary operations in the People's Republic of China encompassing the extraction, exploration, processing, and distribution of both raw and clean coking c...
How the Company Makes Money
The company makes money mainly by selling coking coal and other coal products produced from its mining operations. Revenue is generated when coal products are delivered to customers (typically industrial users such as steel producers and coke/meta...

Shougang Fushan Resources Group Limited Financial Statement Overview

Summary
Financial strength is supported by an exceptionally conservative balance sheet with minimal leverage (debt-to-equity ~0.2%–0.3%). However, fundamentals have weakened: revenue declined in 2023–2024 before a modest 2025 rebound (+8.48%), while profitability compressed sharply (2025 gross margin ~21%, net margin ~13%) and operating/free cash flow fell materially versus 2022–2024.
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
58
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.06B5.06B5.89B8.21B7.08B
Gross Profit1.08B2.59B3.47B5.22B4.32B
EBITDA1.31B2.95B3.92B5.41B4.73B
Net Income632.50M1.49B1.89B2.72B2.54B
Balance Sheet
Total Assets22.19B22.95B22.49B23.46B24.78B
Cash, Cash Equivalents and Short-Term Investments8.88B9.18B7.99B7.20B6.54B
Total Debt37.30M43.68M43.84M32.12M26.03M
Total Liabilities3.81B4.05B4.02B4.79B5.63B
Stockholders Equity16.44B16.48B16.28B16.77B17.30B
Cash Flow
Free Cash Flow634.33M1.92B4.04B3.60B3.44B
Operating Cash Flow992.99M2.37B4.54B3.99B3.94B
Investing Cash Flow-1.07B-182.37M759.31M-857.17M-1.97B
Financing Cash Flow-2.10B-971.72M-2.34B-2.82B-913.72M

Shougang Fushan Resources Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.14
Price Trends
50DMA
2.44
Negative
100DMA
2.70
Negative
200DMA
2.84
Negative
Market Momentum
MACD
-0.06
Negative
RSI
53.58
Neutral
STOCH
91.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0639, the sentiment is Neutral. The current price of 3.14 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.44, and above the 200-day MA of 2.84, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0639.

Shougang Fushan Resources Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$1.04T16.9012.12%8.97%-6.04%-7.87%
67
Neutral
HK$11.96B18.263.92%9.28%-0.02%-59.00%
66
Neutral
HK$14.02B12.9310.96%9.92%-6.35%-57.55%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
HK$174.13B9.3611.15%4.59%-21.82%-20.14%
49
Neutral
HK$8.11B147.460.50%-20.89%-97.28%
41
Neutral
HK$175.00M-0.24-48.57%-10.83%1.54%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0639
Shougang Fushan Resources Group Limited
2.27
-0.35
-13.33%
HK:1898
China Coal Energy Co
9.98
0.83
9.01%
HK:1088
China Shenhua Energy Co
42.40
10.91
34.66%
HK:0975
Mongolian Mining
6.82
-0.80
-10.50%
HK:1393
Hidili Industry International Development Limited
0.04
-0.03
-42.42%
HK:1277
Kinetic Mines & Energy Ltd.
1.58
0.36
29.19%

Shougang Fushan Resources Group Limited Corporate Events

Shougang Fushan to Buy RMB530 Million Beijing Office Property in Connected Deal
Jun 25, 2026
Shougang Fushan Resources Group has announced that an indirect wholly owned subsidiary will acquire 22 office units in the Shouyi Development Building within Beijing’s Shougang Park for RMB530 million, including value-added tax. The assets, ...
Shougang Fushan Wins Strong Shareholder Backing at 2026 AGM
Jun 25, 2026
Shougang Fushan Resources Group Limited reported that all resolutions tabled at its 25 June 2026 annual general meeting were approved by shareholders via poll, reflecting broad investor support for the company’s governance and capital manage...
Shougang Fushan Calls 2026 AGM, Seeks Share Issuance Mandate and Confirms Dividend Plan
Apr 30, 2026
Shougang Fushan Resources Group has called its annual general meeting for 25 June 2026 in Hong Kong, where shareholders will review the directors’ report and audited consolidated financial statements for the year ended 31 December 2025. The ...
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: Jun 27, 2026