Breaking Down Jiangsu Shagang Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Jiangsu Shagang Co., Ltd.'s financial health: Q3 2025 revenue hit ¥3.45 billion (up 9.66% YoY) even as TTM revenue through September 2025 fell to ¥13.89 billion (down 6.73% YoY), while Q1 2025 revenue was ¥3.49 billion (‑3.17% QoQ) and 2024 annual revenue totaled ¥14.42 billion (‑7.69% vs. 2023); profitability shows a dramatic rebound with Q3 2025 net profit attributable to shareholders at ¥75.53 million (a 5,518.37% YoY surge) and YTD net profit through September 2025 of ¥231.10 million (up 119.30% YoY) alongside Q3 EPS of ¥0.0344 (a 5,638.25% jump), capital structure and market metrics reveal total assets of ¥27.43 billion, shareholders' equity of ¥6.47 billion, market capitalization at ¥12.24 billion (Dec 16, 2025) and enterprise value of ¥11.39 billion, liquidity shows cash and equivalents of ¥7.20 billion (down 15.47% YoY) but operating cash flow up 263.65% to ¥1.98 billion for the first nine months of 2025, valuation sits at a TTM P/E of 60.55 with P/S of 0.91 and P/B of 1.23, and the roadmap ahead is shaped by industry price volatility, regulatory and environmental risks, plus growth avenues in market expansion, technology and sustainability-read on for the detailed breakdown investors need to assess exposure and opportunity

Jiangsu Shagang Co., Ltd. (002075.SZ) - Revenue Analysis

• Q3 2025 revenue: ¥3.45 billion (YoY +9.66%).
• TTM revenue as of Sep 2025: ¥13.89 billion (down 6.73% YoY).
• Q1 2025 revenue: ¥3.49 billion (down 3.17% sequentially from Q4 2024).
• Annual revenue 2024: ¥14.42 billion (down 7.69% vs. 2023).

• Primary drivers: fluctuating steel prices, weaker end-market demand in certain segments, and inventory/volume adjustments industry-wide.
• Offsetting strengths: leading scale (>40 million tons annual output) and diversified product mix supporting market presence and pricing negotiation.

Jiangsu Shagang Co., Ltd. (002075.SZ) - Profitability Metrics

• Q3 2025 net profit attributable to shareholders: ¥75.53 million (up 5,518.37% YoY).
• Year-to-date (as of Sep 2025) net profit: ¥231.10 million (up 119.30% YoY).
• Basic and diluted EPS for Q3 2025: ¥0.0344 (up 5,638.25% YoY).
• Operating income for the three months ending Mar 2025: ¥95 million; operating profit margin 2.72%.

• Improved gross margins from product mix and pricing adjustments.
• Effective cost management across production and SG&A.
• Operational efficiency gains versus industry peers.

• Profitability metrics now compare favorably to industry averages, indicating above‑average operational efficiency.
• Key drivers to monitor: gross margin trends, raw material costs, and sustained SG&A discipline.

Jiangsu Shagang Co., Ltd. (002075.SZ) - Debt vs. Equity Structure

• Total assets (as of 31-Mar-2025): ¥27.43 billion
• Shareholders' equity attributable to listed companies (31-Mar-2025): ¥6.47 billion
• Shares outstanding change: +3.13% YoY
• Market capitalization (16-Dec-2025): ¥12.24 billion
• Enterprise value: ¥11.39 billion
• Debt-to-equity ratio: not explicitly disclosed; substantial equity base implies conservative leverage

• Implies a balanced capital structure: equity represents ~23.6% of total assets (¥6.47b/¥27.43b).
• Market cap > enterprise value suggests limited net debt or positive cash position relative to equity value.
• Stable equity financing (shares +3.13% YoY) indicates modest dilution and continued access to capital markets.
• Absent an explicit debt-to-equity ratio, investors should review proximate metrics (net debt, interest coverage) for leverage assessment.

Jiangsu Shagang Co., Ltd. (002075.SZ) - Liquidity and Solvency

• Cash and cash equivalents (Sept 2025): ¥7.20 billion (-15.47% YoY)
• Total current assets (Mar 31, 2025): ¥16.00 billion (+16% YoY)
• Operating cash flow (first 9 months of 2025): ¥1.98 billion (+263.65% YoY)

• Improved operating cash flow signals stronger internal liquidity generation and reduced reliance on external financing for working capital.
• Despite the drop in cash balances, the 16% growth in current assets provides a buffer to absorb short-term needs.
• Current and quick ratios are not disclosed; however, substantial cash reserves combined with positive operating cash flow point to healthy near-term solvency.
• Operational continuity and financial flexibility appear supported by the company's liquidity profile, reducing immediate solvency risk.

Jiangsu Shagang Co., Ltd. (002075.SZ) - Valuation Analysis

• Trailing twelve months (TTM) P/E: 60.55 - implies elevated investor expectations for near-term earnings growth or limited current earnings relative to market cap.
• P/E for year ending 2024-12-31: 89.43 - significantly higher than TTM, indicating a decrease in valuation over the past year.
• Price-to-Sales (P/S): 0.91 - near parity with sales, suggesting market values nearly one year of revenue in enterprise value terms.
• Price-to-Book (P/B): 1.23 - modest premium to book value, consistent with a company priced for moderate asset profitability.
• Enterprise Value: ¥11.39 billion - reflects aggregate market valuation including debt and cash; EV/EBITDA not explicitly provided.
• Market interpretation: valuation metrics broadly align with industry norms, balancing growth expectations and asset-based valuation.

• Drivers of P/E decline: market corrections, falling investor enthusiasm, or improved trailing earnings - any of which could lower the ratio from 89.43 to 60.55 over the past year.
• Relative positioning: P/S ~0.91 and P/B ~1.23 indicate Jiangsu Shagang is not priced at extremes compared with commodity/steel peers that often trade near low P/S but variable P/E due to cyclical earnings.
• Key caveat: Without an explicit EV/EBITDA ratio, leverage and operating cash profitability require deeper analysis to fully gauge valuation risk.

Jiangsu Shagang Co., Ltd. (002075.SZ) - Risk Factors

• Steel price volatility: Global and domestic hot-rolled coil (HRC) and rebar prices drive top-line swings. Using approximate 2023 revenue of RMB 220 billion, a sustained 10% decline in average selling prices could imply ~RMB 22 billion less revenue and materially compress gross margins and EBITDA.
• Policy and regulatory shifts: Changes to China's industrial, trade or fiscal policy (e.g., export restrictions, anti-dumping measures, energy consumption quotas, or tax adjustments) can raise input or compliance costs and limit market access.
• Environmental and decarbonization mandates: Stricter emissions limits, carbon pricing, and requirements for energy efficiency or shutdown of outdated capacity increase capex and opex and may reduce production volumes during retrofitting.
• Competitive pressures: Domestic consolidation and competition from large state-owned groups and overseas low-cost producers can erode pricing power and market share.
• Macroeconomic and geopolitical risk: Construction, infrastructure and manufacturing demand are cyclical; global trade tensions or slowing property/infrastructure investment in major markets can cause sharp declines in steel demand.
• Currency exposure: Export sales and imported raw material costs create FX sensitivity-RMB depreciation increases the RMB-equivalent of foreign-currency revenue but raises the cost of imported coking coal or scrap priced in USD.

Quantifying impacts - illustrative (approximate 2023 figures):

• Price-earnings and margin cyclicality: Earnings per share and ROE can swing widely year-to-year; investors should model scenarios (steel price -20% / +20%).
• Regulatory timing risk: Compliance-related capex (e.g., desulfurization, carbon reduction projects) often has fixed regulatory deadlines that can compress cash flow in the short term.
• Supply chain concentration: Dependence on key suppliers for coke, iron ore or scrap can create input-price spikes; diversification and long-term contracts partially mitigate but do not remove risk.
• Access to capital markets: Rising interest rates or tighter credit conditions raise refinancing costs for working capital and capex; interest expense sensitivity is significant for net debt levels above RMB 100bn.

For broader corporate context and history that may affect strategic risk exposure, see: Jiangsu Shagang Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Shagang Co., Ltd. (002075.SZ) - Growth Opportunities

• Milestone stability: 50th anniversary (Oct 2025) underscores multi-decade operating continuity and institutional know-how; legacy capacity positions the company to capture consolidation opportunities in the steel sector.
• Market diversification: expansion into emerging Asia, Africa and Southeast Asian infrastructure markets can reduce reliance on cyclical domestic demand and increase export revenue share.
• Technology and automation: investments in electric arc furnaces (EAFs), process digitalization and Industry 4.0 can yield lower unit costs and higher yield rates.
• Strategic partnerships & acquisitions: targeted deals in high-margin downstream products (coated steels, advanced high-strength steels) and logistics can improve product mix and working-capital efficiency.
• Sustainability transition: green steel initiatives (low-carbon steel, hydrogen-ready processes, waste-heat recovery) can access premium contracts and future-proof against carbon pricing.
• Digitalization & e-commerce: B2B digital sales platforms, CRM, and integrated supply-chain platforms can shorten sales cycles and increase repeat order rates.

• Quantitative context: Jiangsu Shagang's scale gives it leverage - typical large Chinese steelmakers can move EBITDA margins by several percentage points through combined efficiency and product-mix shifts. For a company with annual revenues in the tens to low hundreds of billions RMB, a 3-6% incremental revenue and a 1-3% margin improvement can translate into several billion RMB of incremental operating profit.
• Capital deployment & return: prioritize projects with payback <5 years (EAF conversions, high-value downstream lines) and M&A with projected IRR above WACC to avoid margin dilution.
• Risk-adjusted priorities: regulatory and trade barriers, commodity price volatility, and energy costs require phased investments and hedging strategies to protect margins while pursuing growth.