600019:SSEBaoshan Iron & Steel Co., Ltd. Class A Analysis
Data as of 2026-03-14 - not real-time
CN¥7.11
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Baoshan Iron & Steel (600019.SS) is trading at CNY7.11, well below its DCF‑derived fair value of approximately CNY11.6, indicating roughly a 38% valuation upside. The stock also trades at a low price‑to‑book of 0.77 and a price‑to‑sales of 0.50, reinforcing its undervalued status.
Dividend sustainability is supported by a 3.09% yield and a 50% payout ratio, backed by strong operating cash flow (CNY42.9 bn) and free cash flow (CNY18.4 bn). Nonetheless, the company carries a high debt‑to‑equity ratio near 20 and operates in the cyclical steel sector, which adds medium‑to‑high sector and regulatory risk.
Dividend sustainability is supported by a 3.09% yield and a 50% payout ratio, backed by strong operating cash flow (CNY42.9 bn) and free cash flow (CNY18.4 bn). Nonetheless, the company carries a high debt‑to‑equity ratio near 20 and operates in the cyclical steel sector, which adds medium‑to‑high sector and regulatory risk.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Significant valuation gap to DCF fair value
- Bullish MACD signal and RSI near neutral
- Strong dividend yield with sustainable payout
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervalued multiples (P/B, P/S) relative to peers
- Robust operating and free cash flow supporting earnings
- Potential recovery in steel demand as macro conditions improve
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Consistent dividend policy delivering attractive yield
- Long‑term structural demand for steel in infrastructure and automotive
- Management's diversified product mix mitigating cyclical exposure
Key Metrics & Analysis
Financial Health
Revenue Growth1.80%
Profit Margin3.03%
P/E Ratio16.2
ROE4.79%
ROA1.85%
Debt/Equity19.88
P/B Ratio0.8
Op. Cash FlowCN¥42.9B
Free Cash FlowCN¥18.4B
Technical Analysis
TrendNeutral
RSI49.5
SupportCN¥6.92
ResistanceCN¥7.35
MA 20CN¥7.09
MA 50CN¥7.18
MA 200CN¥7.12
MACDBullish
VolumeDecreasing
Fear & Greed Index72.88
Valuation
Fair ValueCN¥11.57
GradeUndervalued
TypeValue
Dividend Yield3.09%
Risk Assessment
Beta0.03
Volatility25.05%
Sector RiskHigh
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.