Maanshan Iron & Steel Co Ltd

Maanshan Iron & Steel Co Ltd exhibits a distressed capital structure characterized by significant leverage and weak liquidity. The company carries long-term debt of 31.67 billion CNY against total equity of 23.26 billion CNY, resulting in a debt-to-equity ratio of 1.36. Liquidity is constrained, with a current ratio of 0.43, indicating that current liabilities significantly exceed current assets. The balance sheet shows total assets of 78.96 billion CNY and total liabilities of 55.71 billion CNY. Operating cash flow stands at 960.87 million CNY, but free cash flow is negative at -2.74 billion CNY, driven by capital expenditures of 1.68 billion CNY. The company has a negative net cash position after subtracting total debt.

Profitability metrics are deeply negative, reflecting a challenging operating environment. The company reported a net loss of 4.66 billion CNY on revenue of 81.82 billion CNY. Gross profit was negative at -1.64 billion CNY, indicating that the cost of goods sold exceeded revenue, a severe margin compression event. Operating income was -4.75 billion CNY. Return on equity is -1.02% and return on assets is -0.30%. These figures suggest the company is currently destroying shareholder value and failing to cover its operating costs with sales revenue.

Maanshan Iron & Steel Co Ltd (0323.HK) has seen the addition of several notable steel and power assets to its profile, signaling a potential expansion or clarification of its operational footprint. The most significant addition is the Maanshan Iron and Steel Co Ltd steel plant itself, which utilizes blast furnace (BF), basic oxygen furnace (BOF), and electric arc furnace (EAF) technologies with a capacity of 20,800 tonnes per year. This asset, located in China, underscores the company's core production capabilities in the steel commodity sector. In addition to the primary Maanshan facility, the company's profile now includes the Anhui Changjiang Steel Co Ltd steel plant. This facility also employs BF, BOF, and EAF technologies and has a recorded capacity of 3,800 tonnes per year. The inclusion of this asset suggests a broader operational scope or a specific focus on the Anhui region's steel production capabilities, complementing the main Maanshan operations. Furthermore, the company's energy infrastructure has been highlighted with the addition of the Anhui Changjiang Steel Co., Ltd. Gas Power Project. This operating power asset, located in China, is categorized under both Oil & Gas and Power commodities. It utilizes industrial by-product blast furnace gas and oil/gas sources, with a specific power capacity of 85 MW. This indicates an integrated approach to energy management, leveraging by-products from steel production for power generation. These asset additions provide a clearer picture of Maanshan Iron & Steel's operational structure, combining significant steel production capacity with integrated power generation. With seven analysts covering the stock, these details may influence future financial estimates and ESG assessments, particularly regarding energy efficiency and by-product utilization. The lack of material changes in other fields suggests that these asset updates are the primary recent developments for investors to consider.

Analysts project 11.1% upside to a mean price target of 2.355, suggesting undervaluation relative to current market price.

Free cash flow improved by 44.2% year-over-year in FY2026, indicating a potential stabilization in cash generation capabilities.

Long-term debt decreased to 29.5 billion CNY in FY2025, showing a reduction in leverage compared to the FY2024 peak.

The company faces high credit risk and medium liquidity risk, highlighting significant financial stability concerns for investors.

Debt-to-equity ratio of 1.36 is in the bottom quartile, exceeding the 0.4 cohort median and indicating high leverage.

Revenue ¥81.82B, −17,3% YoY; Operating income −197,7% YoY.

• ▍Revenue ¥81.82B, −17,3% YoY
• ▍Operating income −197,7% YoY
• ▍Net income −251,1% YoY
• ▍Free cash flow +44,2% YoY
• ▍Net margin -5.7%

Revenue ¥98.94B, −3,1% YoY; Operating income −180,7% YoY.

• ▍Revenue ¥98.94B, −3,1% YoY
• ▍Operating income −180,7% YoY
• ▍Net income −54,8% YoY
• ▍Free cash flow +45,6% YoY
• ▍Net margin -1.3%

Revenue ¥102.15B, −10,3% YoY; Operating income −108,1% YoY.

• ▍Revenue ¥102.15B, −10,3% YoY
• ▍Operating income −108,1% YoY
• ▍Net income −116,1% YoY
• ▍Free cash flow −27 690,2% YoY
• ▍Net margin -0.8%

Revenue ¥113.85B, +39,5% YoY; Operating income +144,0% YoY.

• ▍Revenue ¥113.85B, +39,5% YoY
• ▍Operating income +144,0% YoY
• ▍Net income +168,9% YoY
• ▍Free cash flow +101,3% YoY
• ▍Net margin 4.7%

Revenue ¥81.61B; Operating income ¥2.87B.

• ▍Revenue ¥81.61B
• ▍Operating income ¥2.87B
• ▍Net margin 2.4%