Hunan Valin Steel Co Ltd

Valin Steel released its 2026 interim report, with net profit attributable to the parent company of 225 million yuan, down 87.11% from the same period last year. Total operating revenue was 61.203 billion yuan, down 2.99% year-on-year. Net cash inflow from operating activities was 2.265 billion yuan, down 42.62% year-on-year. The company's latest asset-liability ratio was 57.37%, gross margin was 7.16%, ROE was 0.41%, and diluted earnings per share was 0.03 yuan.

A-share listed steel companies broadly came under pressure in the first half of 2026. Data from Hithink RoyalFlush shows that as of July 16, a total of 25 listed steel firms had disclosed their semi-annual earnings forecasts, with 16 reporting losses, accounting for more than 60 percent of the total. Ge Xin, deputy director of Lange Steel Research Center, said the domestic steel market is firmly in a state of oversupply, while raw material prices for iron ore, coking coal and coke remain elevated, keeping overall industry sentiment at a low level. Performance is clearly diverging. Small and medium-sized mills focused on construction long products such as rebar and wire rod are posting large losses, while leading enterprises with exposure to high-end flat products, stainless steel and military-grade special steel are holding the line on profitability. Angang Steel expects a first-half net loss attributable to the parent of 2.047 billion yuan, Bengang Steel Plates warns of a loss of 1.89 billion yuan, and Anyang Iron and Steel has swung from profit to a loss of nearly 1.2 billion yuan. Valin Steel, Taigang Stainless Steel and Liuzhou Iron and Steel remain profitable but with year-on-year declines in net profit, while Hangzhou Iron and Steel has turned a loss into a profit. Ge Xin noted that the steel industry will enter its traditional off-season in the second half of the year, leaving limited room for most steelmakers to repair earnings. However, once the concentrated release of high-grade iron ore from Guinea's Simandou project materialises and domestic policies to ensure coal mine supply and boost output take effect, raw material cost pressure is expected to ease.

On the evening of July 14, several listed steel companies including Bengang Steel Plates, Lingyuan Iron and Steel, and Maanshan Iron and Steel disclosed their first-half 2026 earnings forecasts, broadly anticipating losses. Among them, Bengang Steel Plates expects a net loss attributable to shareholders of the listed company of 1.89 billion yuan, with the loss widening by 35.07 percent year-on-year. Lingyuan Iron and Steel forecasts a net loss attributable to shareholders of the listed company of between 770 million and 810 million yuan, an increase in losses compared with the same period last year. Xining Special Steel expects a net loss attributable to owners of the parent of approximately 303 million yuan, with the loss widening by 69 million yuan year-on-year. Maanshan Iron and Steel anticipates a net loss attributable to shareholders of the listed company of around 72 million yuan, narrowing the loss by about 3 million yuan year-on-year. Earlier, Angang Steel and Chongqing Iron and Steel also warned of first-half losses, while Valin Steel, though forecasting a profit of 200 million to 300 million yuan, sees a year-on-year decline of 82.84 to 88.56 percent. The industry's downturn persists, with the contradiction of strong supply and weak demand becoming more pronounced, and high and firm prices for raw materials such as iron ore and coal serving as the core triggers for the losses.

Valin Steel has disclosed its earnings forecast, expecting a net profit attributable to the parent company of 200 million to 300 million yuan for the first half of 2026, a year-on-year decline of 82.84% to 88.56%, with basic earnings per share of 0.0292 to 0.0438 yuan. The company stated that during the reporting period, the steel industry continued to undergo deep adjustments, structural supply-demand imbalances remained prominent, raw material prices stayed high and volatile, steel prices fluctuated within a range and narrowed, squeezing the industry's profit margins.