Shougang Fushan Resources Group Limited (0639) AI Stock Analysis

• Market Cap: HK$15.78B
• Dividend Yield: 8.85%
• Average Volume (3M): 11.02M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.37
• Revenue Growth: -5.78%
• EPS Growth: -29.52%
• Country: HK
• Employees: 4,105
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): 0.08
• Shares Outstanding: 5,091,066,000
• 10 Day Avg. Volume: 21,362,955
• 30 Day Avg. Volume: 11,020,114
• PEG Ratio: -0.40
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 2.46
• P/FCF Ratio: 6.48
• 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: 79 Outperform
• Price Target: HK$3.50 ▲(11.46% Upside)

The stock's overall score is driven by strong technical indicators and a robust balance sheet, despite challenges in revenue and cash flow generation. The attractive dividend yield further supports the valuation, making it appealing for income-focused investors.

Shougang Fushan Resources Group Limited Business Overview & Revenue Model

Company Description

Shougang Fushan Resources Group Limited (0639) is a Hong Kong-based investment holding company primarily engaged in the resources sector. The company focuses on the extraction, processing, and sale of iron ore and other mining and mineral resources. Its core operations include the mining of iron ore, production of iron ore concentrates, and trading activities, which cater to both domestic and international markets, primarily targeting the steel manufacturing industry.

How the Company Makes Money

Shougang Fushan Resources Group Limited generates revenue primarily through the sale of iron ore and iron ore concentrates. The company operates its mining projects in China, which allows it to leverage the high demand for iron ore driven by the steel industry. Key revenue streams include direct sales of mined minerals to steel manufacturers and traders. Additionally, the company may benefit from strategic partnerships and long-term contracts with steel producers that secure stable demand for its products. Market fluctuations in iron ore prices, operational efficiency, and the ability to maintain cost-effective mining operations also play crucial roles in the company’s earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.66B	5.06B	5.89B	8.21B	7.08B	4.00B
Gross Profit	1.82B	2.59B	3.47B	5.22B	4.32B	1.79B
EBITDA	2.22B	2.95B	3.92B	5.41B	4.73B	2.18B
Net Income	1.06B	1.49B	1.89B	2.72B	2.54B	1.08B
Balance Sheet
Total Assets	22.89B	22.95B	22.49B	23.46B	24.78B	21.43B
Cash, Cash Equivalents and Short-Term Investments	9.45B	9.18B	7.99B	7.20B	6.54B	4.06B
Total Debt	48.38M	43.68M	43.84M	32.12M	26.03M	25.04M
Total Liabilities	4.53B	4.05B	4.02B	4.79B	5.63B	4.14B
Stockholders Equity	15.86B	16.48B	16.28B	16.77B	17.30B	15.84B
Cash Flow
Free Cash Flow	1.04B	1.92B	4.04B	3.60B	3.44B	527.00M
Operating Cash Flow	1.59B	2.37B	4.54B	3.99B	3.94B	996.07M
Investing Cash Flow	-646.20M	-182.37M	759.31M	-857.17M	-1.97B	226.33M
Financing Cash Flow	-968.43M	-971.72M	-2.34B	-2.82B	-913.72M	-1.49B

Shougang Fushan Resources Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.14 is above the 20-day moving average (MA) of 3.00, above the 50-day MA of 2.83, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 20.04 is Neutral, 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
1277	―	HK$11.80B	6.92	19.63%	8.90%	-2.79%	-39.45%
0639	―	HK$15.78B	14.57	6.64%	8.85%	-5.78%	-29.52%
0975	―	$12.34B	19.43	6.76%	―	-20.50%	-64.45%
1733	―	€2.22B	8.06	3.21%	22.67%	-23.72%	-86.69%
1171	―	$141.99B	8.98	17.55%	7.36%	0.80%	-35.81%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0866	―	HK$7.41B	20.28	81.71%	1.37%	-20.71%	209.68%

Shougang Fushan Resources Group Limited Corporate Events

Shougang Fushan Resources Updates Board Structure

Shougang Fushan Resources Group Limited has announced an update to the roles and functions of its Board of Directors, effective from September 23, 2025. This restructuring includes the establishment of four committees: Executive, Audit, Nomination, and Remuneration. The changes are aimed at enhancing the governance and operational efficiency of the company, potentially impacting its strategic direction and stakeholder engagement.

Shougang Fushan Resources Appoints New Executive Director and Chairman

Shougang Fushan Resources Group Limited has announced the appointment of Mr. Chen Yi as the new executive director and chairman of the board, effective from September 23, 2025. Mr. Chen brings extensive experience in the steel industry and corporate governance, which is expected to strengthen the company’s strategic planning and market positioning.

Shougang Fushan Resources Appoints New Chairman

Shougang Fushan Resources Group Limited has announced the appointment of Mr. Chen Yi as the new executive director and chairman of the board, effective from September 23, 2025. Mr. Chen brings extensive experience in the steel industry and corporate governance, which is expected to enhance the company’s strategic planning and regulatory compliance efforts. This leadership change is poised to strengthen the company’s operations and industry positioning.

Shougang Fushan Announces Interim Dividend for 2025

Shougang Fushan Resources Group Limited has announced an interim cash dividend of HKD 0.06 per share for the six months ending June 30, 2025. The dividend will be paid on November 6, 2025, with the record date set for October 3, 2025. This announcement reflects the company’s continued commitment to returning value to its shareholders and may positively impact investor sentiment.

Shougang Fushan Resources to Review Interim Results and Dividend

Shougang Fushan Resources Group Limited has announced a board meeting scheduled for 28 August 2025 to approve the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders, impacting its market positioning and investor relations.

Shougang Fushan Resources Issues Profit Warning Amid Coal Price Volatility

Shougang Fushan Resources Group Limited has issued a profit warning for the first half of 2025, expecting a significant decrease in profits due to a 45% drop in the average realized selling price of clean coking coal. This decline is attributed to a 41% reduction in market prices and changes in coal quality following a transition to mining lower coal seams. Despite these challenges, the company has taken measures to enhance cost efficiency and ensure safe production. The coking coal market has shown signs of recovery since mid-June 2025, driven by tighter supply, increased market confidence, and strong demand, leading to a 35% increase in coal prices.