# Baoshan Iron & Steel (600019.SHG)

Canonical: https://gigainvestors.com/s/600019.SHG

Analysis as of: 2026-10-16T07:34:47.373Z. 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 5.97 per share; close as of 2026-10-15.

Estimated value: low CNY 5.19 per share, central CNY 5.80 per share, high CNY 6.61 per share. Buy at or below the central value CNY 5.80 per share. Valuation as of 2026-10-16T07:34:47.373Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% 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

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.35×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.09×

- FY2018: 0.09×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.09×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.03×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 4.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.7%

- ROIC, second-lowest year: 4.4%

- Typical minus recent gross margin: 4.5 pp

- Typical gross margin (annual median): 10.9%

- Recent gross margin (lower of latest and 3-year median): 6.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.0%

- ROIC including acquisitions, ten-year median: 4.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.9%

- FY2017: 8.8%

- FY2018: 9.9%

- FY2019: 7.1%

- FY2020: 6.3%

- FY2021: 11.8%

- FY2022: 6.5%

- FY2023: 7.0%

- FY2024: 4.4%

- FY2025: 5.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 58B

- Net income, five-year total: CNY 65B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.4 pp

- Working capital / revenue, change between three-year averages: -15.5 pp

- Working capital / revenue, final three-year average: 6.2%

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

- FY2021: 0.96×

- FY2022: 0.82×

- FY2023: 0.74×

- FY2024: 0.80×

- FY2025: 0.98×

### management: fail

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.8% vs 5.7%

- Per-share earnings: 0.55 to 0.48 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.5%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: CNY 57B

- Cumulative retained earnings: CNY 41B

- Diluted shares, 10-year annual growth: 3.5%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.8%

- Per-share value change: CNY -0.07

- Per-share value, starting three-year median: CNY 0.55

- Per-share value, ending three-year median: CNY 0.48

- Buybacks concentrated in cheaper years (correlation): -0.19

- Average buyback yield: 0.7%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 3.9B

- Cumulative net income, 10 years: CNY 140B

- ROIC, first three-year median: 8.8%

- ROIC, last three-year median: 5.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.55

- FY2017: CNY 0.87

- FY2018: CNY 0.97

- FY2019: CNY 0.56

- FY2020: CNY 0.56

- FY2021: CNY 1.06

- FY2022: CNY 0.56

- FY2023: CNY 0.55

- FY2024: CNY 0.34

- FY2025: CNY 0.48

### accounting: pass

- Sloan accruals: -6.4%

- Receivables to sales index (DSRI): 0.33×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -4.0%

- FY2018: -7.2%

- FY2019: -5.9%

- FY2020: -4.3%

- FY2021: -9.5%

- FY2022: -8.1%

- FY2023: -3.6%

- FY2024: -5.6%

- FY2025: -6.4%

## Holders

## Price story

Down 5% since Oct 2023 · sales -1.4%

Story as of 2026-10-16T10:00:02.492Z; price observation 2026-10-15.

Price needs cash profits to grow 1.3% a year for ten years

### Sales · FY2024–2025

sales -1.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 246B 

- FY2017: CNY 289B 

- FY2018: CNY 306B 

- FY2019: CNY 292B 

- FY2020: CNY 282B 

- FY2021: CNY 365B 

- FY2022: CNY 369B 

- FY2023: CNY 345B 

- FY2024: CNY 322B 

- FY2025: CNY 318B 

### Gross margin · FY2025

gross margin 7.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 11.3% 

- FY2017: 14.0% 

- FY2018: 15.1% 

- FY2019: 11.3% 

- FY2020: 10.8% 

- FY2021: 11.0% 

- FY2022: 6.0% 

- FY2023: 6.4% 

- FY2024: 5.5% 

- FY2025: 7.2% 

## Owner memo

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

### How it makes money

Operates in steel; annual sales are CNY 317.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2025: revenue 317507793966.66; grossProfit 22985017880.03; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600019.SHG: Baoshan Iron & Steel Co., Ltd., together with its subsidiaries, manufactures and sells steel products in China and internationally. It operates through three segments: Steel Manufacturing, Processing and Distribution, and Others. The company offers hot rolled steel; Al-Zn coated and BaoAM; tin plate and TFS; heavy plate; pipe and tube; and bar and wire rod, as well as picked, cold rolled, galvanized, pre-painted, electrical, and rail steel sheets. It is also involved in asset management; technology services; steel trading; and manufacturing of laser-welded panels. The company's products are used in energy vehicles, construction, transportation, power transmission and distribution, and energy efficiency improvement, as well as water, nuclear, wind, and solar energy industries. It exports its products. The company was incorporated in 2000 and is based in Shanghai, China. Baoshan Iron & Steel Co., Ltd. operates as a subsidiary of China Baowu Steel Group Co.,Ltd.

### Why customers stay

Margins ranged from 5.5% to 7.2% during 2023–25; it earns 6.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2023: grossProfit / revenue = 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2024: grossProfit / revenue = 5.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2025: grossProfit / revenue = 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); 10-year return on capital observations [[2016,0.038505325292609825],[2017,0.08845284354572802],[2018,0.09886809533575934],[2019,0.07106293922131829],[2020,0.06282513477145484],[2021,0.11820518915044168],[2022,0.06523136248074686],[2023,0.06952711477764804],[2024,0.04399325209246521],[2025,0.056980874970341315]]; median 0.06737923862919745. 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 702.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2016: growth capex 0; upkeep 14937967000; owner earnings 11487380000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2017: growth capex 0; upkeep 13276885000; owner earnings 24117389000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2018: growth capex 0; upkeep 12762272000; owner earnings 27703785000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2019: growth capex 0; upkeep 17625271000; owner earnings 13849366000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2020: growth capex 0; upkeep 19868013000; owner earnings 11119906000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2021: growth capex 5131458000; upkeep 18790826000; owner earnings 22721181725.44. Growth capex / owner earnings = 0.2258446792956421.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2022: growth capex 1897178555.4704285; upkeep 20525773444.52957; owner earnings 9947342675.620428. Growth capex / owner earnings = 0.19072214734495402.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2023: growth capex 0; upkeep 21028690000; owner earnings 8861736968.706. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2024: growth capex 0; upkeep 19336434000; owner earnings 5884981892.976. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2025: growth capex 0; upkeep 18507325935.15; owner earnings 10139782797.017998. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); Dividend observations: [[2016,5179002000],[2017,8092897000],[2018,13316448000],[2019,13347990000],[2020,7236746000],[2021,16736142000],[2022,11087221000],[2023,5922659000],[2024,7953587000],[2025,5241274249.65]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); FY2025: cash repurchases 702608346.5400001 CNY.

### Are managers owners

Insiders own 68.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600019.SHG SharesStats.PercentInsiders = 68.796 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.373Z); Ten-year compound average after fade. Initial solved rate 0.005967362779034313. Price 5.97; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.8138863378889989 → FY2025 0.470449806415095. Closing-price date 2026-10-15.

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

- 2016-10: CNY 5.61 per share

- 2016-11: CNY 6.40 per share

- 2016-12: CNY 6.35 per share

- 2017-01: CNY 6.80 per share

- 2017-02: CNY 7.09 per share

- 2017-03: CNY 6.51 per share

- 2017-04: CNY 6.24 per share

- 2017-05: CNY 6.34 per share

- 2017-06: CNY 6.71 per share

- 2017-07: CNY 7.44 per share

- 2017-08: CNY 8.20 per share

- 2017-09: CNY 7.39 per share

- 2017-10: CNY 7.67 per share

- 2017-11: CNY 9.38 per share

- 2017-12: CNY 8.64 per share

- 2018-01: CNY 9.98 per share

- 2018-02: CNY 10.04 per share

- 2018-03: CNY 8.53 per share

- 2018-04: CNY 9.24 per share

- 2018-05: CNY 8.42 per share

- 2018-06: CNY 7.79 per share

- 2018-07: CNY 8.69 per share

- 2018-08: CNY 7.88 per share

- 2018-09: CNY 7.85 per share

- 2018-10: CNY 7.65 per share

- 2018-11: CNY 6.72 per share

- 2018-12: CNY 6.50 per share

- 2019-01: CNY 7.01 per share

- 2019-02: CNY 7.50 per share

- 2019-03: CNY 7.23 per share

- 2019-04: CNY 7.19 per share

- 2019-05: CNY 6.30 per share

- 2019-06: CNY 6.50 per share

- 2019-07: CNY 6.38 per share

- 2019-08: CNY 5.81 per share

- 2019-09: CNY 5.91 per share

- 2019-10: CNY 5.80 per share

- 2019-11: CNY 5.47 per share

- 2019-12: CNY 5.74 per share

- 2020-01: CNY 5.43 per share

- 2020-02: CNY 5.20 per share

- 2020-03: CNY 4.87 per share

- 2020-04: CNY 4.87 per share

- 2020-05: CNY 4.89 per share

- 2020-06: CNY 4.56 per share

- 2020-07: CNY 4.92 per share

- 2020-08: CNY 4.94 per share

- 2020-09: CNY 4.99 per share

- 2020-10: CNY 5.34 per share

- 2020-11: CNY 6.21 per share

- 2020-12: CNY 5.95 per share

- 2021-01: CNY 6.56 per share

- 2021-02: CNY 7.52 per share

- 2021-03: CNY 8.08 per share

- 2021-04: CNY 8.63 per share

- 2021-05: CNY 7.88 per share

- 2021-06: CNY 7.64 per share

- 2021-07: CNY 7.92 per share

- 2021-08: CNY 10.19 per share

- 2021-09: CNY 8.70 per share

- 2021-10: CNY 7.13 per share

- 2021-11: CNY 6.52 per share

- 2021-12: CNY 7.16 per share

- 2022-01: CNY 7.04 per share

- 2022-02: CNY 7.22 per share

- 2022-03: CNY 6.75 per share

- 2022-04: CNY 6.46 per share

- 2022-05: CNY 6.40 per share

- 2022-06: CNY 6.02 per share

- 2022-07: CNY 5.67 per share

- 2022-08: CNY 5.33 per share

- 2022-09: CNY 5.26 per share

- 2022-10: CNY 4.81 per share

- 2022-11: CNY 5.64 per share

- 2022-12: CNY 5.59 per share

- 2023-01: CNY 6.18 per share

- 2023-02: CNY 6.58 per share

- 2023-03: CNY 6.24 per share

- 2023-04: CNY 6.44 per share

- 2023-05: CNY 5.88 per share

- 2023-06: CNY 5.62 per share

- 2023-07: CNY 6.42 per share

- 2023-08: CNY 6.06 per share

- 2023-09: CNY 6.09 per share

- 2023-10: CNY 6.26 per share

- 2023-11: CNY 6.22 per share

- 2023-12: CNY 5.93 per share

- 2024-01: CNY 6.15 per share

- 2024-02: CNY 6.67 per share

- 2024-03: CNY 6.64 per share

- 2024-04: CNY 6.95 per share

- 2024-05: CNY 6.90 per share

- 2024-06: CNY 6.65 per share

- 2024-07: CNY 6.80 per share

- 2024-08: CNY 5.96 per share

- 2024-09: CNY 6.94 per share

- 2024-10: CNY 6.52 per share

- 2024-11: CNY 6.62 per share

- 2024-12: CNY 7.00 per share

- 2025-01: CNY 7.01 per share

- 2025-02: CNY 7.08 per share

- 2025-03: CNY 7.20 per share

- 2025-04: CNY 6.84 per share

- 2025-05: CNY 6.74 per share

- 2025-06: CNY 6.59 per share

- 2025-07: CNY 7.34 per share

- 2025-08: CNY 6.93 per share

- 2025-09: CNY 7.07 per share

- 2025-10: CNY 7.37 per share

- 2025-11: CNY 7.25 per share

- 2025-12: CNY 7.45 per share

- 2026-01: CNY 7.30 per share

- 2026-02: CNY 7.20 per share

- 2026-03: CNY 6.41 per share

- 2026-04: CNY 6.31 per share

- 2026-05: CNY 6.03 per share

- 2026-06: CNY 5.43 per share

- 2026-07: CNY 6.13 per share

- 2026-08: CNY 5.82 per share

- 2026-09: CNY 5.93 per share

- 2026-10: CNY 5.88 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 3.42 per share, central CNY 3.68 per share, high CNY 4.02 per share

- FY2017: low CNY 2.99 per share, central CNY 3.31 per share, high CNY 3.64 per share

- FY2018: low CNY 8.24 per share, central CNY 9.75 per share, high CNY 11.22 per share

- FY2019: low CNY 8.81 per share, central CNY 11.03 per share, high CNY 12.70 per share

- FY2020: low CNY 7.67 per share, central CNY 8.56 per share, high CNY 9.74 per share

- FY2021: low CNY 13.32 per share, central CNY 16.04 per share, high CNY 18.49 per share

- FY2022: low CNY 11.39 per share, central CNY 12.70 per share, high CNY 14.34 per share

- FY2023: low CNY 9.36 per share, central CNY 11.03 per share, high CNY 12.52 per share

- FY2024: low CNY 6.43 per share, central CNY 7.04 per share, high CNY 7.84 per share

- FY2025: low CNY 4.93 per share, central CNY 5.53 per share, high CNY 6.33 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

Prior published observations retained from 2026-10-15T06:40:33.973Z where newer inputs omit a numeric field or fiscal period.

## 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.