Baoshan Iron & Steel Co Ltd

Baoshan Iron & Steel operates with a capital structure characterized by a debt-to-equity ratio of 0.22, indicating a conservative leverage profile relative to its equity base of 206.17 billion CNY. The company’s current ratio stands at 0.99, suggesting tight short-term liquidity, which is corroborated by the risk assessment flagging medium liquidity risk and negative net cash after subtracting total debt. Despite this, the firm generates substantial operating cash flow of 33.60 billion CNY, which comfortably covers its capital expenditures of 18.51 billion CNY, resulting in a positive free cash flow of 6.99 billion CNY. The market values the company at a price-to-book ratio of 0.58 and an EV/EBITDA of 13.92, reflecting a discount to book value that may signal market concerns over asset efficiency or cyclical headwinds.

Profitability metrics reveal a gross profit of 23.05 billion CNY on revenues of 317.51 billion CNY, yielding a gross margin of approximately 7.26%. The company reports a net income of 10.35 billion CNY, translating to a return on equity (ROE) of 4.56% and a return on assets (ROA) of 2.59%. These returns are modest, typical for capital-intensive integrated steel producers, and suggest that while the company is profitable, it does not generate high economic margins relative to its asset base. The operating income of 13.28 billion CNY indicates that operating leverage is present but constrained by the high revenue base and relatively thin gross margins.

Baoshan Iron & Steel Co Ltd (600019.SS) has updated its power generation asset portfolio with the addition of several new facilities and the retirement of an existing one. The most notable changes include the commissioning of two operating power stations: the Baoshan Works power station, an oil/gas facility with a capacity of 150 MW, and the Nanjing Meishan power station, a coal-fired plant with a 50 MW capacity. Additionally, a larger 350 MW oil/gas unit at the Baoshan Works power station is now listed as operating, while a 60 MW coal-fired unit at the Pingmei Shenma power station has been marked as retired. These asset adjustments reflect a shift in the company's energy infrastructure mix, with a significant increase in oil/gas-based generation capacity at its primary Baoshan Works site. The retirement of the smaller coal-fired Pingmei Shenma station contrasts with the addition of the coal-fired Nanjing Meishan plant, suggesting a nuanced approach to capacity management rather than a blanket phase-out of coal. The simultaneous operation of multiple units at the Baoshan Works site indicates a scaling up of internal power generation capabilities. The significance of these changes lies in their potential impact on the company's operational costs and energy security. By bringing online larger oil/gas facilities, Baoshan Iron & Steel may be aiming to stabilize its power supply or optimize fuel costs, although the specific strategic rationale is not detailed in the available data. The retirement of the Pingmei Shenma asset removes 60 MW of coal capacity from the active roster, which could align with broader efficiency or environmental considerations, even as other coal assets remain in operation. Currently, there are no other material changes reported for Baoshan Iron & Steel Co Ltd, and the company remains covered by eight analysts. The absence of new index memberships or changes in top holder counts suggests that these asset-level updates have not yet triggered broader structural shifts in the company's market profile or ownership structure. Investors should monitor how these power generation adjustments influence future cost structures and ESG metrics, given the mixed fuel sources involved.

Free cash flow surged 904.2% year-over-year to CNY 6.99 billion in FY2026, demonstrating significant cash generation recovery.

Analysts project 22.7% upside to a mean price target of CNY 7.30, reflecting strong institutional confidence in the stock.

Net income increased 40.5% year-over-year to CNY 10.35 billion in FY2026, signaling a robust earnings rebound.

Cash conversion ratio of 3.58 ranks best-in-class among peers, indicating superior efficiency in turning earnings into cash.

Long-term debt decreased to CNY 45.24 billion in FY2026, suggesting improved balance sheet health and reduced leverage pressure.

Operating margin of 3.64% remains significantly below the cohort median of 7.51%, reflecting weak pricing power or cost control.

Return on equity of 4.56% trails the cohort median of 7.87%, suggesting inefficient use of shareholder capital compared to peers.

Medium liquidity and credit risk flags indicate potential vulnerabilities in financial stability and debt servicing capabilities.

Revenue ¥85.07B, +7,3% YoY; Operating income +98,2% YoY.

• ▍Revenue ¥85.07B, +7,3% YoY
• ▍Operating income +98,2% YoY
• ▍Net income +61,2% YoY
• ▍Net margin 2.8%

Revenue ¥81.06B, +1,8% YoY; Operating income +110,7% YoY.

• ▍Revenue ¥81.06B, +1,8% YoY
• ▍Operating income +110,7% YoY
• ▍Net income +130,3% YoY
• ▍Net margin 3.8%

Revenue ¥78.49B, −4,8% YoY; Operating income −7,3% YoY.

• ▍Revenue ¥78.49B, −4,8% YoY
• ▍Operating income −7,3% YoY
• ▍Net income −6,6% YoY
• ▍Net margin 3.1%

Revenue ¥72.88B; Operating income ¥3.47B.

• ▍Revenue ¥72.88B
• ▍Operating income ¥3.47B
• ▍Net margin 3.3%

Revenue ¥79.26B; Operating income ¥1.28B.

• ▍Revenue ¥79.26B
• ▍Operating income ¥1.28B
• ▍Net margin 1.9%

Revenue ¥79.60B; Operating income ¥2.14B.

• ▍Revenue ¥79.60B
• ▍Operating income ¥2.14B
• ▍Net margin 1.7%

Revenue ¥82.44B; Operating income ¥3.75B.

• ▍Revenue ¥82.44B
• ▍Operating income ¥3.75B
• ▍Net margin 3.2%

Revenue ¥317.51B, −1,4% YoY; Operating income +43,3% YoY.

• ▍Revenue ¥317.51B, −1,4% YoY
• ▍Operating income +43,3% YoY
• ▍Net income +40,5% YoY
• ▍Free cash flow +904,2% YoY
• ▍Net margin 3.3%

Revenue ¥322.12B, −6,6% YoY; Operating income −38,3% YoY.

• ▍Revenue ¥322.12B, −6,6% YoY
• ▍Operating income −38,3% YoY
• ▍Net income −38,4% YoY
• ▍Free cash flow −88,8% YoY
• ▍Net margin 2.3%

Revenue ¥344.87B, −6,5% YoY; Operating income −0,5% YoY.

• ▍Revenue ¥344.87B, −6,5% YoY
• ▍Operating income −0,5% YoY
• ▍Net income −2,0% YoY
• ▍Free cash flow +2 901,4% YoY
• ▍Net margin 3.5%

Revenue ¥369.06B, +1,0% YoY; Operating income −51,1% YoY.

• ▍Revenue ¥369.06B, +1,0% YoY
• ▍Operating income −51,1% YoY
• ▍Net income −48,4% YoY
• ▍Free cash flow −95,8% YoY
• ▍Net margin 3.3%

Revenue ¥365.34B; Operating income ¥30.87B.

• ▍Revenue ¥365.34B
• ▍Operating income ¥30.87B
• ▍Net margin 6.5%