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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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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
HK$3.00
▲(28.76% Upside)
Action:Upgraded
Date:08/17/26
The score is supported primarily by exceptional balance-sheet strength and an improving technical trend (price above major moving averages with positive MACD). It is held back by a clear downshift in profitability and cash generation in 2024–2025 and a valuation that looks less compelling for a cyclical business despite a supportive dividend yield.
Positive Factors
Minimal Leverage
Extremely low leverage limits interest and refinancing risk, preserving financial flexibility during coal-price cycles. The stable equity base provides a durable cushion for continued mine operations and potential industry downturns.
Negative Factors
Volatile Revenue Trend
The multiyear revenue pattern shows significant exposure to cyclical coking-coal demand and pricing. Repeated contraction makes future planning less predictable and can pressure mine utilization, customer volumes and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Minimal Leverage
Extremely low leverage limits interest and refinancing risk, preserving financial flexibility during coal-price cycles. The stable equity base provides a durable cushion for continued mine operations and potential industry downturns.
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 primarily by producing and selling coking coal and related coal products. Its revenue model is volume-and-price driven: it extracts raw coal from its mines, processes/beneficiates it (e.g., washing and grading where applica...

Shougang Fushan Resources Group Limited Financial Statement Overview

Summary
Strength is driven by a very conservative balance sheet with minimal leverage and stable equity (Balance Sheet Score: 90). Offsetting this, operating fundamentals have weakened: revenue has been volatile with declines in 2023–2024 and only a modest rebound in 2025 (+8.48%), while margins and earnings compressed sharply versus 2021–2024 (Income Statement Score: 62). Cash generation remains positive but has deteriorated materially, with lower operating cash flow and declining free cash flow (Cash Flow Score: 58).
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
Positive
Last Price2.33
Price Trends
50DMA
2.39
Positive
100DMA
2.52
Positive
200DMA
2.80
Positive
Market Momentum
MACD
0.12
Negative
RSI
69.19
Neutral
STOCH
89.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0639, the sentiment is Positive. The current price of 2.33 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.39, and below the 200-day MA of 2.80, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 89.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
73
Outperform
HK$198.96B10.6411.15%3.94%-21.82%-20.14%
71
Outperform
HK$14.08B22.813.92%5.19%-0.02%-59.00%
70
Outperform
HK$1.12T17.9012.12%5.20%-6.04%-7.87%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
HK$17.67B17.1410.96%6.51%-6.35%-57.55%
58
Neutral
HK$9.83B225.830.50%26.12%46.57%
41
Neutral
HK$170.39M-0.23-94.87%-10.83%1.54%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0639
Shougang Fushan Resources Group Limited
2.84
0.15
5.59%
HK:1898
China Coal Energy Co
11.21
1.96
21.18%
HK:1088
China Shenhua Energy Co
44.44
10.91
32.54%
HK:0975
Mongolian Mining
10.45
2.37
29.33%
HK:1393
Hidili Industry International Development Limited
0.04
-0.03
-43.08%
HK:1277
Kinetic Mines & Energy Ltd.
2.12
1.01
91.75%

Shougang Fushan Resources Group Limited Corporate Events

Shougang Fushan refreshes company secretary and authorised representative
Aug 10, 2026
Shougang Fushan Resources Group Limited has announced a change in key governance roles, with company secretary and authorised representative Ms. Kong Ling Yan resigning effective 10 August 2026 for personal career reasons, and confirming she has n...
Shougang Fushan Flags Up to 49% Profit Jump on Stronger Coking Coal Prices
Aug 7, 2026
Shougang Fushan Resources Group has issued a positive profit alert, projecting consolidated profit attributable to shareholders of HK$550 million to HK$600 million for the first half of 2026, up from about HK$404 million a year earlier. This impli...
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...
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: Aug 17, 2026