Shougang Fushan Resources Group Limited (0639) AI Stock Analysis

• Market Cap: HK$14.76B
• Dividend Yield: 6.19%
• Average Volume (3M): 7.08M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.41
• Revenue Growth: -14.16%
• EPS Growth: -19.38%
• Country: HK
• Employees: 4,105
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Coal
• EPS (TTM): 0.13
• Shares Outstanding: 5,091,066,000
• 10 Day Avg. Volume: 9,242,716
• 30 Day Avg. Volume: 7,078,813
• PEG Ratio: 0.58
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.48
• 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: 70 Outperform
• Price Target: ―

The company's stock score is driven by strong financial stability, especially a solid balance sheet with low leverage. Valuation is also a significant strength, with a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to mixed momentum signals and potential overbought conditions. The lack of recent earnings guidance or notable corporate events limits the ability to assess future outlook comprehensively.

Shougang Fushan Resources Group Limited Business Overview & Revenue Model

Company Description

Shougang Fushan Resources Group Limited, an investment holding company, engages in the mining and exploration of coal resources, and production and sale of raw and clean coking coal in the People's Republic of China. The company owns and operates the Xingwu coal mine covering an area of approximately 11.6 square kilometers; the Jinjiazhuang coal mine covering an area of approximately 6.08 square kilometers; and the Zhaiyadi coal mine covering an area of approximately 13.9 square kilometers located in the Liulin County, Shanxi Province. It primarily serves steel manufacturers. The company was formerly known as Fushan International Energy Group Limited and changed its name to Shougang Fushan Resources Group Limited in May 2011. Shougang Fushan Resources Group Limited was incorporated in 1985 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Shougang Fushan Resources Group Limited generates revenue mainly through the production and sale of coking coal. Its primary revenue streams involve extracting coking coal from its mines, processing it, and then selling it to steel manufacturers and other industrial clients in China. The demand for coking coal is closely tied to the steel industry's performance, as coking coal is a critical raw material for steel production. The company's earnings are significantly influenced by coal prices, production costs, and the efficiency of its mining operations. Additionally, the company may engage in strategic partnerships or agreements with other players in the mining and steel industries to optimize its operations and expand its market reach.

Shougang Fushan Resources Group Limited Financial Statement Overview

Summary

The company exhibits strong financial stability with a robust balance sheet characterized by low debt and high equity. However, challenges are evident in sustaining growth due to recent declines in revenue and cash flow generation.

Income Statement

The company's income statement shows mixed results. While the gross profit margin is strong due to effective cost management, the net profit margin has declined over the last year, reflecting reduced profitability. Revenue has decreased in recent years, indicating a contraction in sales. However, EBIT and EBITDA margins remain healthy, suggesting strong operational efficiency.

Balance Sheet

The balance sheet is robust, with a very low debt-to-equity ratio indicating minimal leverage and financial risk. The company's equity ratio is high, reflecting a stable financial foundation. Return on equity is solid but has seen a slight decrease, suggesting a need to improve profitability or efficiency in utilizing shareholder equity.

Cash Flow

Cash flow metrics show some concerns. Operating cash flow has dropped to zero in the latest year, raising questions about the company's ability to generate cash from operations. Free cash flow has also diminished, impacting the company's ability to reinvest in growth. Despite these challenges, the company has a history of positive free cash flow relative to net income, indicating previous capability to generate cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.06B	5.89B	8.21B	7.08B	4.00B
Gross Profit	2.59B	3.47B	5.22B	4.32B	1.79B
EBITDA	2.95B	3.92B	5.41B	4.73B	2.18B
Net Income	1.49B	1.89B	2.72B	2.54B	1.08B
Balance Sheet
Total Assets	22.95B	22.49B	23.46B	24.78B	21.43B
Cash, Cash Equivalents and Short-Term Investments	9.18B	7.99B	7.20B	6.90B	4.35B
Total Debt	43.68M	43.84M	32.12M	26.03M	25.04M
Total Liabilities	4.05B	4.02B	4.79B	5.63B	4.14B
Stockholders Equity	16.48B	16.28B	16.77B	17.30B	15.84B
Cash Flow
Free Cash Flow	1.92B	4.04B	3.60B	3.44B	527.00M
Operating Cash Flow	2.37B	4.54B	3.99B	3.94B	996.07M
Investing Cash Flow	0.00	759.31M	-857.17M	-1.97B	156.86M
Financing Cash Flow	0.00	-2.34B	-2.82B	-913.72M	-1.49B

Shougang Fushan Resources Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.90
• 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:0639, the sentiment is Positive. The current price of 2.9 is above the 20-day moving average (MA) of 2.72, above the 50-day MA of 2.62, and above the 200-day MA of 2.58, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 95.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0639	70 Outperform	HK$14.76B	9.56	9.12%	6.19%	-14.16%	-19.38%
Sector *	44 Neutral	C$976.20M	-6.71	-13.35%	2.69%	17.20%	-32.62%
MOGLF		$914.07M	3.68	19.62%	―	―	―
YZCHF		$14.49B	5.06	22.05%	7.21%	―	―
1277	80 Outperform	HK$9.95B	4.34	27.12%	13.56%	17.89%	0.63%
WWY1		€268.30M	2.17	10.58%	15.70%	―	―
0866	54 Neutral	HK$4.47B	8.16	87.02%	2.27%	-26.23%	147.99%

Shougang Fushan Resources Group Limited Corporate Events

Shougang Fushan Resources Appoints New Non-Executive Director

Shougang Fushan Resources Group Limited has announced the appointment of Mr. Xu Qian as a non-executive director, effective from April 1, 2025. Mr. Xu brings over ten years of experience in financial investment and asset management, and his expertise in macroeconomic policy and the energy industry is expected to strengthen the company’s board. This strategic appointment could enhance the company’s operations and industry positioning, potentially benefiting stakeholders.

Shougang Fushan Resources Updates Board Roles and Establishes Committees

Shougang Fushan Resources Group Limited has announced an update to the roles and functions of its Board of Directors, effective from April 1, 2025. The company has also established four committees: Executive, Audit, Nomination, and Remuneration, with specific board members assigned to each. This restructuring is likely aimed at enhancing governance and operational efficiency, potentially impacting its strategic direction and stakeholder engagement.

Shougang Fushan Resources Reports Decline in 2024 Financial Results

Shougang Fushan Resources Group Limited reported a decline in its financial performance for the year ended December 31, 2024, with revenue decreasing by 14% and profit dropping by 21% compared to the previous year. Despite the downturn, the company proposed a final dividend of HK21 cents per share, reflecting a 100% dividend payout ratio, indicating a commitment to returning value to shareholders.

Shougang Fushan Resources Group Announces Final Dividend for 2024

Shougang Fushan Resources Group Limited announced a final cash dividend of HKD 0.21 per share for the financial year ending December 31, 2024. This decision reflects the company’s financial performance and commitment to providing returns to its shareholders, with the dividend payment scheduled for July 24, 2025.

Shougang Fushan Resources Group Limited Announces Auditor Change

Shougang Fushan Resources Group Limited has announced a proposed change of auditor, with PricewaterhouseCoopers (PwC) set to retire following the upcoming annual general meeting. The company plans to appoint SHINEWING (HK) CPA Limited as the new auditor, subject to shareholder approval. This change is part of the company’s efforts to maintain good corporate governance and auditor independence. The Audit Committee has endorsed SHINEWING based on its experience, industry knowledge, and resources, deeming it suitable to provide high-quality audit services. This move is considered beneficial for the company and its shareholders.

Shougang Fushan Resources Group Schedules Board Meeting for Financial Results and Dividend Decision

Shougang Fushan Resources Group Limited has announced that its board of directors will meet on March 27, 2025, to approve the company’s final results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is significant as it may impact the company’s financial strategy and shareholder returns, potentially influencing its market position and stakeholder interests.