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Analysts Are Optimistic We'll See A Profit From Maanshan Iron & Steel Company Limited (HKG:323)

Simply Wall St · 1d ago

Maanshan Iron & Steel Company Limited (HKG:323) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Maanshan Iron & Steel Company Limited, together with its subsidiaries, manufactures and sells iron and steel products, and related by-products in Mainland China, Hong Kong, and internationally. The HK$20b market-cap company posted a loss in its most recent financial year of CN¥209m and a latest trailing-twelve-month loss of CN¥22m shrinking the gap between loss and breakeven. The most pressing concern for investors is Maanshan Iron & Steel's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 6 of the Hong Kong Metals and Mining analysts is that Maanshan Iron & Steel is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥632m in 2026. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 76% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
SEHK:323 Earnings Per Share Growth July 15th 2026

Underlying developments driving Maanshan Iron & Steel's growth isn’t the focus of this broad overview, though, keep in mind that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Maanshan Iron & Steel

Before we wrap up, there’s one issue worth mentioning. Maanshan Iron & Steel currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Maanshan Iron & Steel's case is 42%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Maanshan Iron & Steel to cover in one brief article, but the key fundamentals for the company can all be found in one place – Maanshan Iron & Steel's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

  1. Valuation: What is Maanshan Iron & Steel worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Maanshan Iron & Steel is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Maanshan Iron & Steel’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.