Angang Steel Co Ltd

Angang Steel exhibits a distressed capital structure characterized by negative profitability and tight liquidity. The company reports a current ratio of 0.56, indicating significant short-term liquidity pressure, while maintaining a debt-to-equity ratio of 0.34. Total liabilities stand at 52.17 billion CNY against total equity of 43.88 billion CNY, with long-term debt comprising 14.85 billion CNY. The firm generates positive operating cash flow of 1.79 billion CNY but suffers from negative free cash flow of -4.60 billion CNY due to capital expenditures of 4.63 billion CNY.

Profitability metrics are deeply negative, with a return on equity of -13.72% and return on assets of -6.27%. The company recorded a net loss of 4.07 billion CNY on revenues of 96.05 billion CNY, resulting in a negative gross profit of -1.59 billion CNY and operating income of -3.91 billion CNY. These figures indicate that the company is currently unable to cover its cost of goods sold, a severe deviation from typical industry norms where gross margins are positive.

Net income improved 42.9% year-over-year to a loss of CNY 4.07 billion in FY2026, indicating stabilizing profitability trends.

Operating income rose 44.4% year-over-year to a loss of CNY 3.91 billion in FY2026, suggesting core operational improvements.

Free cash flow improved 29.1% year-over-year to a negative CNY 4.6 billion in FY2026, showing reduced cash burn.

The debt-to-equity ratio of 0.34 is below the cohort median of 0.4, indicating a relatively conservative leverage position.

Dilution risk is assessed as low, providing some protection to existing shareholders against equity value erosion.

The company recorded a net loss of CNY 4.07 billion in FY2026, with negative net margins of -5.85%.

Long-term debt surged to CNY 14.85 billion in FY2026, nearly doubling from CNY 6.71 billion in FY2022.

Credit risk is flagged as high, signaling significant concerns regarding the company's ability to meet financial obligations.

Analysts maintain a sell recommendation with a mean price target of HKD 1.326, implying 1.8% downside.

Revenue ¥96.05B, −8,6% YoY; Operating income +44,4% YoY.

• ▍Revenue ¥96.05B, −8,6% YoY
• ▍Operating income +44,4% YoY
• ▍Net income +42,9% YoY
• ▍Free cash flow +29,1% YoY
• ▍Net margin -4.2%

Revenue ¥105.10B, −9,1% YoY; Operating income −69,3% YoY.

• ▍Revenue ¥105.10B, −9,1% YoY
• ▍Operating income −69,3% YoY
• ▍Net income −118,8% YoY
• ▍Free cash flow −131,9% YoY
• ▍Net margin -6.8%

Revenue ¥115.57B, −11,8% YoY; Operating income −1 505,4% YoY.

• ▍Revenue ¥115.57B, −11,8% YoY
• ▍Operating income −1 505,4% YoY
• ▍Net income −3 113,9% YoY
• ▍Free cash flow −4,8% YoY
• ▍Net margin -2.8%

Revenue ¥131.07B, −3,7% YoY; Operating income −102,9% YoY.

• ▍Revenue ¥131.07B, −3,7% YoY
• ▍Operating income −102,9% YoY
• ▍Net income −98,5% YoY
• ▍Free cash flow −151,9% YoY
• ▍Net margin 0.1%

Revenue ¥136.12B; Operating income ¥8.94B.

• ▍Revenue ¥136.12B
• ▍Operating income ¥8.94B
• ▍Net margin 5.1%