Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Fushan Energy: Back to Interesting Levels

Fushan Energy: 50% of Mkt Cap in Cash / ~18% Dividend Yield / Great Returns Just in Dividends

Shougang Fushan: Deep Value Play with Coking Coal Price Move Upside

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Shougang Fushan Resources / Equity Bottom-Up

<p>In our previous insight on <a href="https://www.smartkarma.com/entities/shougang-fushan-resources-group-ltd" target="_blank" data-smartkarma-citation="entities:19494:1" rel="noopener">Shougang Fushan Resources (639 HK)</a>, <a href="https://www.smartkarma.com/insights/shougang-fushan-deep-value-play-with-coking-coal-price-move-upside" target="_blank" data-smartkarma-citation="insights:43878" rel="noopener">Shougang Fushan: Deep Value Play with Coking Coal Price Move Upside</a>, we highlighted the stock as a good pure play on coking coal with :</p><ul>
<li>More than 45% of the market capitalization or 96 cents of the share price ( 1.95 HKD/share ) in cash.  We believe that number will have grown since the buyback as the company is generating solid cash flow.</li>
<li>FCF yield of 12% and a dividend yield of 8.5% with upside risk as coking coal prices in China are rising due to a crackdown on imports for coking coal from Australia and strong pig iron production.</li>
<li>The stock still trades on cheap valuations of 2.8/2.3x EV-EBITDA FY20e/FY21e. </li>
</ul><p>We see the possibility of a strong breakout in pricing for coking coal in the near term as Chinese mills can pass on the high raw material costs, which will benefit <a href="https://www.smartkarma.com/entities/shougang-fushan-resources-group-ltd" target="_blank" data-smartkarma-citation="entities:19494:1" rel="noopener">Shougang Fushan Resources (639 HK)</a> in the short-term.</p>

In our previous insight on Shougang Fushan Resources (639 HK), Shougang Fushan: Deep Value Play with Coking Coal Price Move Upside, we highlighted the stock as a good pure play on coking coal with :
More than 45% of the market capitalization or 96 cents of the share price ( 1.95 HKD/share ) in cash.  We believe that number will have grown since the buyback as the company is generating solid cash flow.
FCF yield of 12% and a dividend yield of 8.5% with upside risk as coking coal prices in China are rising due to a crackdown on imports for coking coal from Australia and strong pig iron production.
The stock still trades on cheap valuations of 2.8/2.3x EV-EBITDA FY20e/FY21e. 
We see the possibility of a strong breakout in pricing for coking coal in the near term as Chinese mills can pass on the high raw material costs, which will benefit Shougang Fushan Resources (639 HK) in the short-term.

Shougang Fushan: Increasing Coking Coal Price to Drive the Share Price Higher