Jiangsu Shagang Co Ltd

Jiangsu Shagang Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of CNY 15.65 billion against total equity of CNY 6.57 billion, resulting in a debt-to-equity ratio of 1.25. The company holds long-term debt of CNY 8.19 billion, which exceeds its total equity, indicating a reliance on debt financing. Liquidity is assessed as medium, supported by a current ratio of 1.24, suggesting adequate short-term assets to cover immediate obligations. Operating cash flow stands at CNY 1.43 billion, while free cash flow is CNY 702 million, reflecting capital expenditures of CNY 448 million. The negative net cash position, after subtracting total debt, highlights a constrained liquidity buffer despite positive operating cash generation.

Profitability metrics indicate modest returns on capital, with a return on equity (ROE) of 4.07% and a return on assets (ROA) of 1.2%. The company reported net income of CNY 267 million on revenue of CNY 13.12 billion, yielding a net margin of approximately 2.04%. Gross profit was CNY 1.16 billion, and operating income was CNY 567 million. These returns are relatively low, suggesting thin margins typical of the metals and mining industry, where operational efficiency and volume are critical drivers of profitability. The price-to-earnings ratio of 27.07 and EV/EBITDA of 27.24 imply that the market values the company at a premium relative to its current earnings, potentially reflecting expectations for future margin expansion or cyclical recovery.