Shougang Fushan Resources Group Ltd. (639) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kinetic Development Group Ltd.

Shougang Fushan Resources Group Ltd.

Mongolian Mining Corp.

E-Commodities Holdings Ltd.

Perennial Energy Holdings Ltd.

China Coal Energy Co., Ltd.

Yankuang Energy Group Co., Ltd.

China Qinfa Group Ltd.

Hidili Industry International Development Ltd.

Henan JinMa Energy Co., Ltd.

China Shenhua Energy Co., Ltd.

Why is Shougang Fushan Resources Group Ltd. ?

High Management Efficiency with a high ROE of 14.18%

Company has very low debt and has enough cash to service the debt requirements

High Debt company with Weak Long Term Fundamental Strength

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 3,521.48 MM
ROCE(HY) Lowest at 3.84%
INTEREST COVERAGE RATIO(Q) Lowest at 60,499.89

With ROE of 8.33%, it has a Fair valuation with a 1.06 Price to Book Value

Over the past year, while the stock has generated a return of -4.56%, its profits have fallen by -25.2%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -4.56% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shougang Fushan Resources Group Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shougang Fushan Resources Group Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shougang Fushan Resources Group Ltd.

-4.56%

-0.62

33.46%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.56%

EBIT Growth (5y)

0.08%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.37

Tax Ratio

28.14%

Dividend Payout Ratio

96.62%

Pledged Shares

Institutional Holding

ROCE (avg)

35.19%

ROE (avg)

14.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.06

EV to EBIT

4.38

EV to EBITDA

3.20

EV to Capital Employed

1.16

EV to Sales

1.44

PEG Ratio

Dividend Yield

ROCE (Latest)

26.58%

ROE (Latest)

8.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 10.23 times

NET SALES(Q)

Highest at HKD 2,954.38 MM

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 3,521.48 MM

ROCE(HY)

Lowest at 3.84%

INTEREST COVERAGE RATIO(Q)

Lowest at 60,499.89

RAW MATERIAL COST(Y)

Grown by 71.7% (YoY

CASH AND EQV(HY)

Lowest at HKD 8,880.34 MM

DEBT-EQUITY RATIO (HY)

Highest at -53.81 %

DIVIDEND PER SHARE(HY)

Lowest at HKD 10.23

OPERATING PROFIT(Q)

Lowest at HKD 575.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.5 %

PRE-TAX PROFIT(Q)

Lowest at HKD 386.18 MM

NET PROFIT(Q)

Lowest at HKD 228.36 MM

EPS(Q)

Lowest at HKD 0.04

Here's what is working for Shougang Fushan Resources Group Ltd.

Debtors Turnover Ratio

Highest at 10.23 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at HKD 2,954.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Depreciation

At HKD 333.75 MM has Grown at 18.56%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Shougang Fushan Resources Group Ltd.

Interest Coverage Ratio

Lowest at 60,499.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at HKD 3,521.48 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD 575.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 19.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 386.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -66.18%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 228.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -65.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 8,880.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -53.81 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at HKD 10.23

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Raw Material Cost

Grown by 71.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at HKD 0.38 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income