# Inner Mongolia BaoTou Steel Union (600010.SHG)

Canonical: https://gigainvestors.com/s/600010.SHG

Analysis as of: 2026-10-16T07:35:15.319Z. Financial observations: FY1997–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 2.06 per share; close as of 2026-10-15.

Estimated value: low CNY 0.75 per share, central CNY 0.83 per share, high CNY 0.94 per share. Buy at or below the central value CNY 0.83 per share. Valuation as of 2026-10-16T07:35:15.319Z; scenarios are not confidence intervals.

Expected annual return: 5.4% at the stated quote. About 5.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 1

- Operating margin variation: 1.20×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.01×

- FY2017: 0.05×

- FY2018: 0.06×

- FY2019: 0.02×

- FY2020: 0.01×

- FY2021: 0.04×

- FY2022: -0.01×

- FY2023: 0.01×

- FY2024: 0.00×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.0%

- ROIC, second-lowest year: -0.4%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 9.6%

- Recent gross margin (lower of latest and 3-year median): 8.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 4.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.4%

- FY2017: 3.1%

- FY2018: 4.5%

- FY2019: 1.1%

- FY2020: 0.9%

- FY2021: 4.3%

- FY2022: -1.1%

- FY2023: 0.5%

- FY2024: 0.1%

- FY2025: 3.0%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 4.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 16B

- Net income, five-year total: CNY 3.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 7.8 pp

- Working capital / revenue, change between three-year averages: 55.0 pp

- Working capital / revenue, final three-year average: 2.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.77×

- FY2022: -2.37×

- FY2023: 5.27×

- FY2024: 10.13×

- FY2025: 9.72×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.1% vs 0.5%

- Per-share earnings: 0.00 to 0.01 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: CNY -19B

- Cumulative retained earnings: CNY 7.0B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.4%

- Per-share value change: CNY 0.01

- Per-share value, starting three-year median: CNY 0.00

- Per-share value, ending three-year median: CNY 0.01

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.6%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 994M

- Cumulative net income, 10 years: CNY 9.8B

- ROIC, first three-year median: 3.1%

- ROIC, last three-year median: 0.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.00

- FY2017: CNY 0.04

- FY2018: CNY 0.07

- FY2019: CNY 0.01

- FY2020: CNY 0.01

- FY2021: CNY 0.06

- FY2022: CNY -0.02

- FY2023: CNY 0.01

- FY2024: CNY 0.01

- FY2025: CNY 0.01

### accounting: pass

- Sloan accruals: -1.4%

- Receivables to sales index (DSRI): 0.43×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.88×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.5%

- FY2017: -3.6%

- FY2018: -2.6%

- FY2019: 0.7%

- FY2020: -2.4%

- FY2021: -5.5%

- FY2022: -1.9%

- FY2023: 1.0%

- FY2024: -1.4%

- FY2025: -1.4%

## Holders

## Price story

Down 36% since Feb 2026 · sales -2.5%

Story as of 2026-10-16T10:00:04.226Z; price observation 2026-10-15.

Price needs cash profits to grow 13.9% a year for ten years

### Sales · FY2024–2025

sales -2.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 31B 

- FY2017: CNY 54B 

- FY2018: CNY 67B 

- FY2019: CNY 63B 

- FY2020: CNY 59B 

- FY2021: CNY 86B 

- FY2022: CNY 72B 

- FY2023: CNY 71B 

- FY2024: CNY 68B 

- FY2025: CNY 66B 

### Gross margin · FY2025

gross margin 9.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 8.3% 

- FY2017: 15.4% 

- FY2018: 15.6% 

- FY2019: 12.9% 

- FY2020: 9.5% 

- FY2021: 10.6% 

- FY2022: 7.7% 

- FY2023: 8.8% 

- FY2024: 7.3% 

- FY2025: 9.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are CNY 66.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2025: revenue 66357524000.64; grossProfit 6410748040.54; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600010.SHG: Inner Mongolia Baotou Steel Union Co., Ltd. engages in the produces and sells iron and steel materials in China. It offers hot-rolled steel strip, cold-rolled steel strip, pickled steel strip, hot-dip galvanized steel strip, heavy plates, and electrical steel that are used in automotive, home appliance, shipbuilding, construction, engineering machinery, petroleum, mining machinery, and mechanical parts manufacturing industries; and steel pipes and tubes that are used in oil casing, drill pipes, perforating gun tubes, boiler tubes, marine pipes, pipeline pipes, grid structure pipes, hydraulic support pipes, fluid transportation pipes, gas cylinder pipes, and axles. It also provides z-beams, sheet piles, angle steel, and other special-shaped profiles that are used in industrial and corridors, sea dikes, railway poles, and steel for railway vehicle beams; rails; hot-rolled ribbed steel bars, high-carbon hard wires, cold heading steels, welding wires and electrode steel, round steel for pumping rods, etc.; and rare earth steel and concentrates. In addition, the company offers fluorite concentrate; metallurgical coke, coke oven gas, crude benzene, coal tar and modified pitch, anthracene oil, wash oil, coking naphthalene, light oil, phenol oil, crude phenol, ammonium sulfate, and coking crude sulfur. Inner Mongolia Baotou Steel Union Co., Ltd. was founded in 1999 and is headquartered in Baotou, China. Inner Mongolia Baotou Steel Union Co., Ltd. operates as a subsidiary of Baotou Iron and Steel (Group) Co., Ltd.

### Why customers stay

Margins ranged from 7.3% to 9.7% during 2023–25; it earns 1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2023: grossProfit / revenue = 8.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2024: grossProfit / revenue = 7.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2025: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); 10-year return on capital observations [[2016,-0.0038825260024402393],[2017,0.03135416841292245],[2018,0.04537619932994068],[2019,0.011424993719457294],[2020,0.009379955619159943],[2021,0.04302106330477976],[2022,-0.010639153422119456],[2023,0.005028147523223822],[2024,0.0010044261883579997],[2025,0.029675843131868915]]; median 0.010402474669308617. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2016: growth capex 4482963016.61; upkeep 3489904664; owner earnings 85033700. Growth capex / owner earnings = 52.71983950610169.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2017: growth capex 0; upkeep 729145010.54; owner earnings 4717884989.46. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2018: growth capex 0; upkeep 2461448643.77; owner earnings 3932778356.23. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2019: growth capex 0; upkeep 1960194996.19; owner earnings 2151889516.81. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2020: growth capex 0; upkeep 1095963282.98; owner earnings 3096838111.02. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2021: growth capex 0; upkeep 949920047.75; owner earnings 5084690714.940001. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2022: growth capex 0; upkeep 977238014.25; owner earnings 1719669484.104. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2023: growth capex 0; upkeep 1756215974.62; owner earnings 2715889022.6280003. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2024: growth capex 0; upkeep 1839028234; owner earnings 2680233510.676. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2025: growth capex 0; upkeep 1622114632.18; owner earnings 3632636975.8201766. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); Dividend observations: [[2016,1632121184],[2017,1680439655],[2018,1704009648],[2019,2214328543],[2020,1725354675.06],[2021,2952039],[2022,3102349],[2023,1354212418.67],[2024,1451477907],[2025,1330951086.4]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); FY2025: cash repurchases 1316113001.3166664 CNY.

### Are managers owners

Insiders own 56.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600010.SHG SharesStats.PercentInsiders = 56.375 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:15.319Z); Ten-year compound average after fade. Initial solved rate 0.1874859829002381. Price 2.06; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.5513156717770505 → FY2025 0.0806987997116237. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 2.81 per share

- 2016-11: CNY 2.98 per share

- 2016-12: CNY 2.79 per share

- 2017-01: CNY 2.94 per share

- 2017-02: CNY 3.11 per share

- 2017-03: CNY 3.03 per share

- 2017-04: CNY 3.02 per share

- 2017-05: CNY 2.19 per share

- 2017-06: CNY 2.19 per share

- 2017-07: CNY 2.81 per share

- 2017-08: CNY 2.79 per share

- 2017-09: CNY 2.70 per share

- 2017-10: CNY 2.60 per share

- 2017-11: CNY 2.60 per share

- 2017-12: CNY 2.46 per share

- 2018-01: CNY 2.48 per share

- 2018-02: CNY 2.37 per share

- 2018-03: CNY 2.19 per share

- 2018-04: CNY 2.08 per share

- 2018-05: CNY 1.71 per share

- 2018-06: CNY 1.55 per share

- 2018-07: CNY 1.67 per share

- 2018-08: CNY 1.51 per share

- 2018-09: CNY 1.66 per share

- 2018-10: CNY 1.62 per share

- 2018-11: CNY 1.53 per share

- 2018-12: CNY 1.48 per share

- 2019-01: CNY 1.47 per share

- 2019-02: CNY 1.77 per share

- 2019-03: CNY 1.83 per share

- 2019-04: CNY 1.73 per share

- 2019-05: CNY 1.76 per share

- 2019-06: CNY 1.69 per share

- 2019-07: CNY 1.58 per share

- 2019-08: CNY 1.50 per share

- 2019-09: CNY 1.46 per share

- 2019-10: CNY 1.37 per share

- 2019-11: CNY 1.28 per share

- 2019-12: CNY 1.32 per share

- 2020-01: CNY 1.25 per share

- 2020-02: CNY 1.17 per share

- 2020-03: CNY 1.15 per share

- 2020-04: CNY 1.08 per share

- 2020-05: CNY 1.10 per share

- 2020-06: CNY 1.08 per share

- 2020-07: CNY 1.17 per share

- 2020-08: CNY 1.16 per share

- 2020-09: CNY 1.15 per share

- 2020-10: CNY 1.14 per share

- 2020-11: CNY 1.21 per share

- 2020-12: CNY 1.17 per share

- 2021-01: CNY 1.15 per share

- 2021-02: CNY 1.54 per share

- 2021-03: CNY 1.56 per share

- 2021-04: CNY 1.47 per share

- 2021-05: CNY 1.64 per share

- 2021-06: CNY 1.55 per share

- 2021-07: CNY 2.85 per share

- 2021-08: CNY 3.76 per share

- 2021-09: CNY 3.17 per share

- 2021-10: CNY 2.81 per share

- 2021-11: CNY 2.89 per share

- 2021-12: CNY 2.79 per share

- 2022-01: CNY 2.34 per share

- 2022-02: CNY 2.68 per share

- 2022-03: CNY 2.23 per share

- 2022-04: CNY 1.88 per share

- 2022-05: CNY 2.01 per share

- 2022-06: CNY 2.35 per share

- 2022-07: CNY 2.26 per share

- 2022-08: CNY 2.01 per share

- 2022-09: CNY 1.84 per share

- 2022-10: CNY 1.76 per share

- 2022-11: CNY 1.99 per share

- 2022-12: CNY 1.92 per share

- 2023-01: CNY 2.04 per share

- 2023-02: CNY 2.05 per share

- 2023-03: CNY 1.89 per share

- 2023-04: CNY 1.82 per share

- 2023-05: CNY 1.83 per share

- 2023-06: CNY 1.79 per share

- 2023-07: CNY 1.89 per share

- 2023-08: CNY 1.79 per share

- 2023-09: CNY 1.72 per share

- 2023-10: CNY 1.62 per share

- 2023-11: CNY 1.53 per share

- 2023-12: CNY 1.46 per share

- 2024-01: CNY 1.42 per share

- 2024-02: CNY 1.54 per share

- 2024-03: CNY 1.60 per share

- 2024-04: CNY 1.60 per share

- 2024-05: CNY 1.54 per share

- 2024-06: CNY 1.40 per share

- 2024-07: CNY 1.46 per share

- 2024-08: CNY 1.44 per share

- 2024-09: CNY 1.73 per share

- 2024-10: CNY 1.71 per share

- 2024-11: CNY 1.92 per share

- 2024-12: CNY 1.86 per share

- 2025-01: CNY 1.78 per share

- 2025-02: CNY 1.81 per share

- 2025-03: CNY 1.79 per share

- 2025-04: CNY 1.73 per share

- 2025-05: CNY 1.74 per share

- 2025-06: CNY 1.79 per share

- 2025-07: CNY 2.69 per share

- 2025-08: CNY 2.79 per share

- 2025-09: CNY 2.38 per share

- 2025-10: CNY 2.54 per share

- 2025-11: CNY 2.43 per share

- 2025-12: CNY 2.38 per share

- 2026-01: CNY 2.51 per share

- 2026-02: CNY 3.24 per share

- 2026-03: CNY 2.51 per share

- 2026-04: CNY 2.70 per share

- 2026-05: CNY 2.36 per share

- 2026-06: CNY 2.23 per share

- 2026-07: CNY 2.23 per share

- 2026-08: CNY 2.25 per share

- 2026-09: CNY 2.09 per share

- 2026-10: CNY 2.13 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 0.27 per share, central CNY 0.27 per share, high CNY 0.28 per share

- FY2018: low CNY 0.68 per share, central CNY 0.74 per share, high CNY 0.83 per share

- FY2019: low CNY 0.75 per share, central CNY 0.82 per share, high CNY 0.91 per share

- FY2020: low CNY 0.91 per share, central CNY 1.01 per share, high CNY 1.15 per share

- FY2021: low CNY 1.42 per share, central CNY 1.59 per share, high CNY 1.82 per share

- FY2022: low CNY 1.10 per share, central CNY 1.22 per share, high CNY 1.39 per share

- FY2023: low CNY 0.80 per share, central CNY 0.89 per share, high CNY 1.01 per share

- FY2024: low CNY 0.88 per share, central CNY 0.97 per share, high CNY 1.09 per share

- FY2025: low CNY 0.80 per share, central CNY 0.88 per share, high CNY 1.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.