Gansu Jiu Steel Hits Day Low of CNY 2.00 Amid Price Pressure

Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. experienced a significant decline today, with the stock dropping by 9.91% to reach an intraday low of CNY 2.00. This performance stands in contrast to the broader market, as the China Shanghai Composite index fell only 0.26% during the same period. Over the past week, Gansu Jiu Steel has shown a positive trend, gaining 6.38%, and it has performed well over the past month with a 13.64% increase. However, the year-to-date performance remains strong at 21.21%, outpacing the China Shanghai Composite's 2.92% gain. Despite these short-term gains, the company has faced challenges, including a high debt-to-equity ratio of 4.68 and a concerning average return on capital employed (ROCE) of just 2.30%. The company has reported negative results for the last six consecutive quarters, indicating ongoing financial difficulties. With a market capitalization of CNY 11,024 million, Gansu Jiu Steel operates within the ferrous metals industry, but its long-term growth prospects appear limited, as evidenced by a decline in net sales and operating profit over the past five years.