Angang Steel Co (0347) AI Stock Analysis

• Market Cap: HK$25.91B
• Dividend Yield: N/A
• Average Volume (3M): 11.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• 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$1.17
• Price Target Upside: -39.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.19
• Revenue Forecast (FY): HK$94.19B

• Rating: 42 Neutral
• Price Target: HK$2.00 ▲(3.09% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by sustained losses and negative profitability through TTM, with only partial support from an equity-backed balance sheet and improving operating cash flow that has not yet translated into positive free cash flow. Technicals remain weak with the share price below major moving averages, while valuation is difficult to justify given negative earnings and no dividend yield data.

Positive Factors

Vertical integration

Owning the full steel value chain supports cost control, product mix flexibility and margin capture over cycles. Integration reduces reliance on external processors and suppliers, helping the company protect spreads and serve diverse industrial end-markets sustainably.

Equity cushion on balance sheet

A sizable equity base relative to assets gives the company longer runway through downturns and greater creditor confidence. This structural capital buffer improves resilience versus peers when earnings are negative and supports credit access for necessary investment or restructuring.

Improving operating cash flow

A shift to positive operating cash flow signals operational remediation and better working-capital management. Sustained OCF strength is a prerequisite for eventual free-cash-flow recovery and reduces near-term liquidity strain while the company stabilizes margins.

Negative Factors

Sustained negative profitability

Persistent negative gross and operating margins indicate structural pressure on spreads versus input costs and weak pricing power. Continued losses constrain reinvestment, weaken returns on capital, and make long-term recovery dependent on material cost or product-mix improvements.

Rising leverage

Increasing debt relative to equity reduces financial flexibility and raises refinancing and interest burdens, especially with negative earnings. Higher leverage limits capacity to fund capex, environmental upgrades or price-competitive initiatives without external financing or equity support.

Negative free cash flow

Negative free cash flow, despite improved operating cash, implies heavy capex or working-capital drain not yet offset by operations. Sustained FCF deficits force reliance on external funding, hindering debt reduction and long-term investments needed to restore competitiveness.

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 weakness dominates: profitability has deteriorated into sustained losses through TTM with negative gross and operating profit. The balance sheet provides some cushion via a meaningful equity base, but rising leverage and negative returns increase risk. Cash flow is improving (TTM operating cash flow turned positive), yet negative free cash flow and ongoing losses indicate the recovery is not self-funding yet.

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: Negative
• Last Price: 1.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0347, the sentiment is Negative. The current price of 1.94 is below the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.94, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$374.12M	0.30	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$5.43B	11.95	1.16%	0.76%	-14.11%	―
0323	49 Neutral	HK$33.80B	29.68	-8.13%	―	-10.10%	10.40%
1053	47 Neutral	HK$15.27B	-31.86	-12.42%	―	-14.20%	8.19%
1090	46 Neutral	HK$1.09B	24.36	-15.58%	―	-8.38%	-86.16%
0347	42 Neutral	HK$25.91B	-5.40	-8.39%	―	-9.09%	34.73%

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.