Trader logo

Chinese Stocks: Part-3 (Iron&Steel Stocks)

by Tech Writer 12 days ago in stocks

This tends to take a glance at the stock performances of some of the companies operating in the iron and steel manufacturing and marketing business within and outside China.

Baoshan Iron & Steel Co. Ltd.

Baoshan Iron & Steel Co., Ltd. [600019.CH] is an industrial company that has its basis in China, established and licensed in February 2000 with its headquarter located at Shanghai region. The company deals on the production and sales of different kinds of iron and steel products. The business of the company involves the production, sales and distribution of the cold rolled plates and coils, hot rolled plates and coils, seamless steel tubes, high-speed wire rods, steel billets, and other related products that are been produced by the company. The company focuses on delivering of its business within China with about 47,710 staffs and presently headed by Jixin Zou.

On the aspect of its performance in the Chinese stock market, the stock of Baoshan Iron & Steel Co., Ltd. [600019.CH] is trending with price tag of about 11.24 CNY per stock. This implies that the price of the stock is on a 24 hours price difference with ratio of 1.58%. The stock also trends on a 12 months price increment ratio of 8.00% YoY as compared to the price as at same period last year. The stock also sales on a 52-weeks high price of 11.57 CNY and 52-weeks low price of 4.90 CNY. With reference to the market capitalization of the company which hits about CNY250.29 billion and the most recent annual revenue that has been reported by the company (FY20) which amounts to about CNY284.43 billion, the PSR (price to sales ratio) on annual basis amounted to about 0.75x. This shows a reasonable supported from the total revenue generated from business in FY20 despite standing on a negative magnitude. Some of the factors facilitated the negative magnitude recorded in the total revenue generated from business during the Fy20 period are (1) outbreak of the contagious corona virus which caused temporarily closure of business during that period and (2) slight reduction in the production rate of the company.

ANALYSIS:

Price Against volume.

Weekly price and trading volume chart

From the chart above, the index widely followed as a benchmark that reflects the movement of those Chinese stocks that trade in the Chinese stock market. You can see how it peaked in September 13 at 11.85. The heavy selling volume of middle September took the trading volume below 300 million.

This week’s continued unloading found a new price magnitude above 40 percent before some buying came in and it managed to close at 11.84 CNY. Consider the extraordinary difference between the weakness of this index and the new all-time highs just seen in the S&P 500 and the NASDAQ-100.

Price Against Accumulation/Distribution

Monthly price and accumulation/distribution chart

From the above chart, it is quite a dramatic surge when viewed on this time frame, isn’t it? From 6.56 early this year all the way up to 11.84 by middle September. Unlike the index that appeared on the March, 2020 pandemic low area with even greater selling volume than seen at that time.

Shandong Iron & Steel Group

Shandong Iron & Steel Group Co., Ltd. [600022:CH] is an industrial company that has its headquarter and basis in China, precisely in the Ji'nan region. The company deals on the manufacturing, marketing and distribution of different kinds of steel products. The products of the company comprises of steel plates, hot rolled coils, hot rolled ribbed bars, and special steel products. Most of the company’s products are vastly exported to oversea countries such as United States, Britain, Germany, India, Japan, Africa and other neighboring countries. The company started its business and was issued a business license in December 2000, while delivering services to clients with up to 21,398 staffs and headed by Dengkui Tao.

Today being 11th September, the Chinese stock market reported that the stock of Shandong Iron & Steel Group Co., Ltd. [600022:CH]is currently been traded with about 2.53 CNY per stock, signifying that it trends on a 24 hours price decrease by 2.33% as compared to the price as at yesterday. The current price of the stock represent a slight increment by 1.12% YoY as compared to the price reported in the previous year. . The stock also sales on a 52-weeks high price of 2.60 CNY and 52-weeks low price of 1.29 CNY. With reference to the market capitalization of the company which hits about CNY27.58 billion and the most recent annual revenue that has been reported by the company (FY20) which amounts to about CNY87.31 billion, the PSR (price to sales ratio) on annual basis amounted to about 0.32x. Despite the industrial downtrend during the pandemic period, the company managed to stay positive despite the temporarily closure of business to reduce to rate at which the virus is transmitted.

ANALYSIS:

Price Against volume.

Weekly price chart against the stock's volume

From the chart above, the index widely followed as a benchmark that reflects the movement of those Chinese stocks that trade in the Chinese stock market. You can see how it peaked in September 13 at 2.53. The heavy selling volume of first week of September took the trading volume below 1.45 billion.

This week’s continued unloading found a new price magnitude above 32 percent before some buying came in and it managed to close at 11.84 CNY. Consider the extraordinary difference between the weakness of this index and the new all-time highs just seen in the S&P 500.

Price Against Accumulation/Distribution

Monthly chart of price against acumulation/distribution

From the above chart, it is quite a significant and reasonable performance when viewed on this time frame, isn’t it? From -6 billion volume early this year all the way up to above -2 billion by middle September. Unlike the index that appeared on the March, 2020 pandemic low area with even greater selling volume than seen at that time.

Sources:

https://www.marketscreener.com/quote/stock/BAOSHAN-IRON-STEEL-CO--6495746/company/

https://www.bloomberg.com/profile/company/441:GR

https://www.reuters.com/companies/600019.SS/key-metrics

https://www.bloomberg.com/profile/company/SISGZ:CH

https://www.reuters.com/companies/600022.SS/financials

https://www.marketscreener.com/quote/stock/SHANDONG-IRON-AND-STEEL-C-6497418/company/

stocks

Tech Writer

Receive stories by Tech Writer in your feed
Tech Writer
Read next: How To Afford a Home Mortgage

Find us on socal media

Miscellaneous links