China Oriental flags 20–40% profit rise for 2025 despite weak steel market

An update from China Oriental Group Co ( (HK:0581) ) is now available.

China Oriental Group has issued a positive profit alert, saying it expects net profit for the year ended 31 December 2025 to rise to between RMB270 million and RMB315 million, up roughly 20% to 40% from RMB225 million a year earlier. The company attributes the improvement to cheaper raw materials falling faster than steel prices, strict execution of lean management measures in cost and efficiency, and a rebound in production and sales volumes, which combined to lift gross profit margins despite weak downstream demand, though final audited results are still pending and investors are urged to trade cautiously.

The group is still finalising its 2025 annual results, with the figures based on unaudited management accounts and subject to adjustment, and it plans to release full-year numbers by 31 March 2026. The anticipated profit growth suggests the company is managing to strengthen its operational efficiency and profitability amid a challenging steel market, which may support its competitive position but also underscores ongoing sector headwinds for stakeholders to monitor.

The most recent analyst rating on (HK:0581) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Oriental Group Co stock, see the HK:0581 Stock Forecast page.

More about China Oriental Group Co

China Oriental Group Company Limited is a Bermuda-incorporated company listed in Hong Kong that operates in the iron and steel industry. The group focuses on producing and selling iron and steel products, serving downstream sectors that have recently faced sluggish demand and declining average selling prices.

YTD Price Performance: 1.53%

Average Trading Volume: 3,334,576

Technical Sentiment Signal: Sell

Current Market Cap: HK$4.95B

Learn more about 0581 stock on TipRanks’ Stock Analysis page.