Changes in Hong Kong stocks | Most steel stocks have declined, and the overall profit of the steel industry is still at the bottom of the cycle. Many general steel and special steel companies have experienced sharp declines in net market ratios

The Zhitong Finance App learned that most steel stocks fell. As of press release, Asia Pacific Resources (01104) fell 4.27% to HK$1.57; Ma On Shan Steel (00323) fell 3.47% to HK$1.67; Angang Steel (00347) fell 1.65% to HK$1.19; and Chongqing Iron & Steel (01053) fell 1.11% to HK$0.89.

According to the news, a number of steel companies recently announced their 26-year interim results forecast. Maanshan Iron and Steel expects to achieve a net loss attributable to shareholders of listed companies of about RMB 0.72 billion in the first half of 2026, a reduction of about RMB 03 billion compared with the same period last year; Angang Steel Co., Ltd. expects to achieve a net loss attributable to shareholders of the company of about RMB 2,047 billion in the first half of 2026, an increase of about 83.59% over the previous year; it is expected to deduct non-net loss of about RMB 2,109 million, an increase of about 71.32% year on year. Cinda Securities pointed out that judging from the disclosed companies, the overall profit of the industry is still at the bottom of the cycle. Companies such as Angang Steel Co., Ltd. and Bengang Steel Sheet still have large pre-losses, and large-scale losses in the industry have not been fundamentally reversed.

However, Cinda Securities said that it is worth noting that the above poor performance is fully reflected in current stock prices after recent adjustments. The net market ratios of many general steel standards have all fallen below 0.5 times. At the same time, the net market ratio of special steel standards has also been drastically lowered, and sector valuations are in a relatively low range in history. The bank believes that with the concentrated release of weak performance reports, the “boot landing” effect in the market may become apparent, and there is limited room for further sector valuations. Combining the above, under the triple logic of medium- to long-term improvement in the supply and demand pattern, strengthening short-term cost support, and undervaluation of the sector, the steel sector is expected to usher in value restoration, and allocation value is prominent.