Angang Steel Co (0347) AI Stock Analysis

• Market Cap: HK$26.31B
• Dividend Yield: N/A
• Average Volume (3M): 11.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -9.09%
• EPS Growth: 34.73%
• Country: HK
• Employees: 25,028
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.11
• Shares Outstanding: 1,411,540,000
• 10 Day Avg. Volume: 12,249,910
• 30 Day Avg. Volume: 11,823,190
• PEG Ratio: -0.02
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -3.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$1.95
• Price Target Upside: -3.34% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$2.00 ▼(-0.99% Downside)

The score is held down mainly by weak financial performance (persistent losses and negative free cash flow, with rising leverage). Technicals provide some support from an upward trend, but overbought momentum signals add risk. Valuation is also constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Vertical integration & diversified product mix

Integrated operations from ironmaking to distribution and a broad product set (plates, hot/cold coils, coated and long products) create structural resilience. Vertical integration helps control input costs, capture margin across the value chain and serve diverse end markets over multiple cycles.

Meaningful equity base provides cushion

A sizable equity base relative to assets offers a durable buffer against cyclical earnings volatility and shocks. This capital cushion preserves borrowing capacity and supports capital spending or environmental compliance investments without immediate solvency pressure during multi-quarter downturns.

Operating cash flow has recovered

Improvement to positive operating cash flow signals better near-term liquidity and operational cash generation, reducing urgent refinancing needs. If sustained, this strengthens the firm’s ability to fund working capital and gradual capex, improving durability through steel-cycle fluctuations.

Negative Factors

Sustained negative profitability

Persistent negative gross and operating margins across 2022–2024 and into the TTM period indicate structural margin pressure. Continued losses erode retained capital, constrain reinvestment options, and mean the company must address cost structure or product mix to restore durable profitability.

Rising leverage reduces flexibility

Material increase in leverage amid negative returns heightens refinancing and interest-rate risk. Higher debt lowers strategic flexibility for capex or environmental upgrades and increases vulnerability to demand shocks, a persistent constraint on long-term operational and financial options.

Negative free cash flow persists

Negative free cash flow driven by heavy spending and working-capital drag limits the firm's ability to deleverage or invest in higher-margin products. Reliance on external funding to cover FCF deficits is a lasting headwind to balance-sheet repair and margin recovery if not reversed.

Angang Steel Co Business Overview & Revenue Model

Company Description

Angang Steel Company Limited engages in the production, processing, and sale of steel products in the People's Republic of China. Its principal products include hot rolled sheets, medium and thick plates, cold rolled sheets, galvanized steel sheets, color coating plates, cold rolled silicon steel, heavy rails and sections, seamless steel pipes and wire rods, and other products. The company also engages in ferrous metal smelting and steel pressing and processing activities. In addition, it sells metal materials and products, and building materials, etc.; provides wholesale and retail purchasing services; develops metallurgy and related materials and equipment; and purchases and sells metal and other materials, as well as imports, exports, wholesales, and retails technology products. Further, the company engages in the purification of cooking gas; production of coal products and dissolved acetylene; and sale of compressed and liquefied gas. The company's products are used in various industries, such as machinery, metallurgy, petroleum, chemical industry, coal, electricity, railway, ship, automobile, construction, home appliances, and aviation industries. It also exports its products. The company was formerly known as Angang New Steel Company Limited and changed its name to Angang Steel Company Limited in June 2006. Angang Steel Company Limited was founded in 1997 and is headquartered in Anshan, China.

How the Company Makes Money

Angang Steel generates revenue primarily through the production and sale of steel products. The company's revenue model is based on a combination of direct sales to industrial customers and partnerships with distributors and wholesalers. Key revenue streams include the sale of hot-rolled and cold-rolled steel sheets, which are in high demand in various sectors such as construction and automotive manufacturing. Additionally, Angang Steel benefits from fluctuations in steel prices, which can significantly impact its profit margins. The company also engages in long-term contracts with major clients, ensuring a stable revenue flow. Strategic partnerships with other manufacturers and suppliers in the supply chain further enhance its earnings potential.

Angang Steel Co Financial Statement Overview

Summary

Income statement is the key weakness: sustained losses through TTM with negative gross and operating profitability despite a modest revenue rebound. Balance sheet is a partial offset with a meaningful equity base, but leverage has risen and returns are negative. Cash flow is improving with positive TTM operating cash flow, yet free cash flow remains negative, limiting self-funding strength.

Income Statement

Profitability has deteriorated sharply from 2020–2021 (healthy profits and positive margins) to sustained losses in 2022–2024, and remains loss-making in TTM (Trailing-Twelve-Months). TTM shows negative gross profit and negative operating profitability, indicating pricing/volume and cost pressure in a cyclical steel environment. A modest TTM revenue rebound versus the prior year is a positive signal, but margins remain deeply negative and earnings have not stabilized.

Balance Sheet

The balance sheet shows a meaningful equity base relative to assets, which provides some cushion despite weak earnings. However, leverage has risen significantly in TTM (Trailing-Twelve-Months) versus recent annual periods (debt-to-equity moved notably higher), reducing flexibility at a time when returns on equity are negative. Overall, the company is not over-levered versus assets, but the direction of leverage and ongoing losses are clear risks.

Cash Flow

Cash generation is mixed: TTM (Trailing-Twelve-Months) operating cash flow is positive, improving from negative operating cash flow in 2024, which helps near-term liquidity. That said, free cash flow is negative in TTM (Trailing-Twelve-Months) and has weakened materially versus prior periods, suggesting heavy spending and/or working-capital drag. With net losses still present, the cash profile is improving but not yet consistently self-funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.92B	105.10B	113.50B	131.07B	136.67B	100.90B
Gross Profit	-813.00M	-3.72B	-535.00M	3.05B	13.24B	9.30B
EBITDA	-3.79B	-2.65B	-263.00M	3.36B	13.52B	7.18B
Net Income	-4.08B	-7.12B	-3.26B	156.00M	6.96B	1.98B
Balance Sheet
Total Assets	97.49B	100.58B	97.01B	96.94B	97.53B	88.05B
Cash, Cash Equivalents and Short-Term Investments	3.67B	4.56B	3.22B	5.09B	5.38B	5.33B
Total Debt	30.18B	12.29B	6.83B	6.96B	6.71B	14.53B
Total Liabilities	50.70B	51.91B	41.62B	38.14B	37.33B	34.19B
Stockholders Equity	45.73B	47.68B	54.76B	58.14B	59.67B	53.37B
Cash Flow
Free Cash Flow	-2.19B	-4.04B	-1.48B	1.89B	8.33B	6.14B
Operating Cash Flow	1.97B	-787.00M	1.58B	6.14B	12.85B	9.92B
Investing Cash Flow	-3.72B	-3.73B	-2.95B	-3.97B	-4.17B	-3.55B
Financing Cash Flow	2.74B	5.74B	-534.00M	-2.48B	-8.63B	-5.71B

Angang Steel Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0347, the sentiment is Positive. The current price of 2.02 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.92, and above the 200-day MA of 1.96, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0347.

Angang Steel Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1938	70 Outperform	HK$358.96M	1.31	19.13%	―	-13.26%	63.38%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0581	54 Neutral	HK$5.21B	18.74	1.16%	0.76%	-14.11%	―
0323	49 Neutral	HK$32.80B	-9.47	-8.13%	―	-10.10%	10.40%
0347	47 Neutral	HK$26.31B	-4.29	-8.39%	―	-9.09%	34.73%
1053	47 Neutral	HK$15.07B	-5.00	-12.42%	―	-14.20%	8.19%
1090	46 Neutral	HK$1.03B	-2.31	-15.58%	―	-8.38%	-86.16%

Angang Steel Co Corporate Events

Angang Steel Forecasts Sharply Reduced Loss for 2025 on Operational Improvements

Angang Steel has issued a profit alert indicating a significantly narrower net loss for the year ended 31 December 2025, with unaudited net loss attributable to shareholders expected to be about RMB4.08 billion, down roughly 42.75% from RMB7.12 billion in 2024, and a similar reduction after excluding non-recurring items. Management attributes the improvement to an industry environment that has slightly improved despite persistent oversupply, alongside the company’s efforts to expand markets, adjust its product mix, boost operational efficiency, cut energy use and costs, optimize procurement, and upgrade key production lines, all of which have enhanced competitiveness and overall operating performance, though the group remains loss-making and advises investors to exercise caution.

The most recent analyst rating on (HK:0347) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Angang Steel Co stock, see the HK:0347 Stock Forecast page.

Angang Steel Co Reports Strong Market Expansion and Cost Reduction in Q3 2025

In its third quarterly report for 2025, Angang Steel Co highlighted significant progress in market expansion and cost reduction. The company exceeded its target for premium product sales and introduced new products like hot-rolled battery shell steel. It also achieved substantial growth in the sales of new energy vehicle silicon steel and automotive steel. Internationally, the company successfully exported 60-meter-long rails and improved its customer service standards. On the cost reduction front, Angang Steel implemented measures that led to a reduction in logistics costs by 9.18% and a decrease in steel production costs by RMB90 per tonne compared to the previous year.

The most recent analyst rating on (HK:0347) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Angang Steel Co stock, see the HK:0347 Stock Forecast page.