NanJing Iron & Steel Co Ltd

NanJing Iron & Steel maintains a capital structure characterized by significant leverage, with long-term debt of 22.66 billion CNY against total equity of 27.71 billion CNY, resulting in a debt-to-equity ratio of 0.82. The company reports a current ratio of 0.78, indicating short-term liquidity pressure, which is corroborated by the risk assessment flagging medium liquidity risk and negative net cash after subtracting total debt. Operating cash flow stands at 3.67 billion CNY, while free cash flow is 941.54 million CNY, constrained by capital expenditures of 2.68 billion CNY.

Profitability metrics show a return on equity of 8.25% and a return on assets of 3.27%. The company generated a net income of 2.87 billion CNY on revenue of 57.99 billion CNY, yielding a net margin of approximately 4.94%. The gross profit of 7.72 billion CNY suggests a gross margin of roughly 13.31%, while operating income of 3.51 billion CNY indicates an operating margin of about 6.05%. These returns are typical for capital-intensive steel producers, though specific cohort median comparisons are not provided in the input data to benchmark relative performance.

Revenue concentration details by segment or geography are not present in the available data. The company’s total revenue of 57.99 billion CNY is derived from its core steel manufacturing activities, but specific breakdowns of product lines or regional sales are omitted from the current snapshot.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the company’s growth momentum or cyclicality from the provided information. The current financial snapshot reflects a single normalized period, preventing year-over-year or quarter-over-quarter comparisons.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting reliance on external financing or cash flow generation to service obligations. The current ratio below 1.0 further underscores potential short-term solvency challenges, requiring careful management of working capital and debt maturities.

Recent events are reflected in analyst sentiment, with a mean price target of 7.83 CNY and a mean recommendation of 1.33, indicating strong buy consensus. There are two strong-buy ratings and one buy rating, with no hold ratings, suggesting positive market expectations for the company’s future performance despite current liquidity constraints.

Analysts project 65.9% upside to a consensus target price of 7.83 CNY, rating the stock a strong buy.

Net income surged 26.8% year-over-year to 2.87 billion CNY in fiscal 2026, demonstrating strong profitability recovery.

Return on equity of 8.25% exceeds the cohort median of 7.87%, indicating superior capital efficiency relative to peers.

Free cash flow turned positive to 941.5 million CNY in fiscal 2026, reversing previous years of negative cash generation.

Cash conversion ratio of 1.61 outperforms the cohort median of 1.2, highlighting effective operational cash management.

The company faces high credit risk, posing significant potential for future loan losses or financial instability.

Long-term debt increased to 22.66 billion CNY in fiscal 2026, reflecting a heavy and growing leverage burden.

Operating margin of 4.44% remains below the cohort median of 7.51%, indicating weaker operational efficiency than peers.

Net margin of 3.85% trails the cohort median of 5.27%, suggesting limited pricing power or cost control issues.

Revenue ¥57.99B, −6,2% YoY; Operating income +34,6% YoY.

• ▍Revenue ¥57.99B, −6,2% YoY
• ▍Operating income +34,6% YoY
• ▍Net income +26,8% YoY
• ▍Free cash flow +423,1% YoY
• ▍Net margin 4.9%

Revenue ¥61.81B, −14,8% YoY; Operating income −3,2% YoY.

• ▍Revenue ¥61.81B, −14,8% YoY
• ▍Operating income −3,2% YoY
• ▍Net income +6,4% YoY
• ▍Free cash flow +79,4% YoY
• ▍Net margin 3.7%

Revenue ¥72.54B, +2,6% YoY; Operating income −2,4% YoY.

• ▍Revenue ¥72.54B, +2,6% YoY
• ▍Operating income −2,4% YoY
• ▍Net income −1,7% YoY
• ▍Free cash flow +42,1% YoY
• ▍Net margin 2.9%

Revenue ¥70.67B, −7,7% YoY; Operating income −47,1% YoY.

• ▍Revenue ¥70.67B, −7,7% YoY
• ▍Operating income −47,1% YoY
• ▍Net income −48,6% YoY
• ▍Free cash flow −301,6% YoY
• ▍Net margin 3.1%

Revenue ¥76.55B; Operating income ¥5.21B.

• ▍Revenue ¥76.55B
• ▍Operating income ¥5.21B
• ▍Net margin 5.5%