601618:SSEMetallurgical Corporation of China Ltd. Class A Analysis

Technical outlook: The stock trades at ¥2.68, which sits below the 20‑day SMA (~¥2.77) and well under the 50‑day SMA (~¥2.88), confirming a bearish short‑term trend. The 14‑day RSI is in the mid‑30s and the MACD histogram is negative, signalling oversold conditions but still bearish momentum. Price is hugging the calculated support level of ¥2.60, with the nearest resistance near ¥2.88.
Fundamental perspective: Despite a 24.6% revenue contraction and thin profit margins, the company generates strong free cash flow (≈¥63.8 bn) and maintains a modest debt‑to‑equity ratio (~50%). The dividend yield of 2.09% is backed by a low payout ratio (28%). Most strikingly, the DCF‑derived fair value (~¥40.45) dwarfs the current price, flagging a profound valuation gap. Overall, the stock appears heavily undervalued, with solid cash generation and a sustainable dividend, but short‑term price pressure remains evident.