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China Oriental Group Co
(0581)
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Rating:50Neutral
Price Target:
HK$1.00
▼(-11.50% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by thin profitability, low returns on equity, and inconsistent/negative free cash flow despite a profit recovery and strong 2025 revenue growth. Technicals are neutral-to-slightly constructive in the short term, but the longer-term trend remains weak. Valuation is a notable headwind with a high P/E and only a modest dividend yield.
Positive Factors
Revenue Recovery
A near-30% revenue gain in 2025 shows the company can regain volume and pricing traction after a loss year. Sustained top-line recovery over several quarters supports fixed-cost absorption, scale benefits, and a clearer pathway for margin normalization if input costs remain controlled.
Negative Factors
Thin Profitability & Low ROE
Very narrow gross and net margins leave minimal buffer against raw-material or energy cost swings common in steel. A ~1% ROE signals weak returns on invested capital, implying limited ability to generate shareholder value and a need for structural margin improvement to justify reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
A near-30% revenue gain in 2025 shows the company can regain volume and pricing traction after a loss year. Sustained top-line recovery over several quarters supports fixed-cost absorption, scale benefits, and a clearer pathway for margin normalization if input costs remain controlled.
Read all positive factors
China Oriental Group Co (0581) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.21B
Dividend Yield1.77%
Average Volume (3M)1.15M
Price to Earnings (P/E)13.2
Beta (1Y)0.83
Revenue Growth-0.43%
EPS Growth7.50%
CountryHK
Employees11,660
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)0.03
Shares Outstanding3,722,569,000
10 Day Avg. Volume1,631,000
30 Day Avg. Volume1,145,066
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.20
Price to Sales (P/S)0.11
P/FCF Ratio-84.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)HK$41.34B
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 st...
How the Company Makes Money
China Oriental Group primarily makes money by selling steel products it manufactures. Key revenue streams generally include (1) sales of finished steel products to downstream customers (e.g., construction and industrial users), and (2) sales of pr...
China Oriental Group Co Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.41B | 42.96B | 46.26B | 48.62B | 51.96B |
| Gross Profit | 2.49B | 1.77B | 717.29M | 1.75B | 4.09B |
| EBITDA | 2.04B | 1.41B | 818.52M | 1.61B | 4.21B |
| Net Income | 224.96M | 149.11M | -159.69M | 807.51M | 2.49B |
Balance Sheet | |||||
| Total Assets | 50.67B | 50.08B | 50.03B | 48.02B | 52.12B |
| Cash, Cash Equivalents and Short-Term Investments | 13.87B | 6.88B | 7.88B | 6.71B | 11.50B |
| Total Debt | 17.93B | 16.43B | 15.50B | 13.56B | 14.17B |
| Total Liabilities | 25.61B | 25.12B | 25.05B | 22.74B | 29.00B |
| Stockholders Equity | 22.38B | 22.29B | 22.27B | 22.58B | 22.55B |
Cash Flow | |||||
| Free Cash Flow | -52.09M | 1.25B | -1.27B | -2.42B | -574.84M |
| Operating Cash Flow | 1.42B | 2.60B | 246.62M | -301.11M | 835.90M |
| Investing Cash Flow | -2.65B | -1.06B | -674.00M | 73.18M | -2.83B |
| Financing Cash Flow | 1.51B | -1.65B | 1.94B | -2.34B | 3.16B |
China Oriental Group Co Technical Analysis
Negative
1.13
Price Trends
1.10
Negative
1.14
Negative
1.21
Negative
Market Momentum
>-0.01
Positive
44.04
Neutral
42.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0581, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.10, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0581.
China Oriental Group Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | HK$8.15B | 251.42 | 0.74% | 1.20% | -18.57% | -89.19% | |
50 Neutral | HK$4.21B | 13.24 | 1.18% | 1.77% | -0.43% | 7.50% | |
44 Neutral | HK$1.28B | -20.40 | -35.39% | ― | -56.46% | -275.00% | |
44 Neutral | HK$13.75B | -4.03 | -18.85% | 6.49% | -6.57% | -6.67% | |
41 Neutral | HK$84.58M | -0.43 | -19.78% | ― | 12.93% | 67.33% | |
38 Underperform | HK$157.43M | -12.28 | -1.67% | 2.37% | -9.05% | 44.68% |
* Basic Materials Sector Average
HK:0581
China Oriental Group Co
1.10
-0.30
-21.56%
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Asia Resources Holdings Limited
0.19
0.02
13.10%
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Newton Resources Ltd.
0.32
0.08
33.33%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
0.90
-0.45
-33.33%
HK:0893
China Vanadium Titano-Magnetite Mining Co., Ltd.
0.07
-0.02
-26.67%
HK:3788
China Hanking Holdings Ltd.
3.29
0.15
4.78%
China Oriental Group Co Corporate Events
China Oriental Updates Bermuda Registered Office and Share Registrar Address
Jul 31, 2026
China Oriental Group Company Limited has announced a change of address for its registered office and its principal share registrar and transfer agent in Bermuda, effective 3 August 2026, moving these functions to Richmond House, 12 Par-la-Ville Ro...
China Oriental Shareholders Approve All AGM Resolutions, Confirm Dividends and Capital Mandates
Jun 10, 2026
China Oriental Group Company Limited reported that all resolutions at its 10 June 2026 annual general meeting were approved by shareholders via poll, confirming its 2025 audited financial statements and endorsing a final dividend of HK$0.02 per sh...
China Oriental Posts Solid Q1 2026 Steel Sales and Operating Profit
May 27, 2026
China Oriental Group has reported unaudited operating data for the first quarter of 2026, highlighting sales of approximately 2.0 million tonnes of self-manufactured steel products. The company also recorded gross profit of about RMB100 to RMB150 ...
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.