Hengbang Smelting's credit rating maintained at AA+ with stable outlook

Shandong Hengbang Smelting Co., Ltd. (SZSE:002237) retains its AA+ credit rating with a stable outlook, according to a 2025 tracking report by China Chengxin International. The rating reflects Hengbang's established scale in gold smelting, technological advantages, and support from its major shareholder, Jiangxi Copper. While acknowledging these strengths, China Chengxin also highlighted concerns regarding a notable increase in inventory levels, a decline in gold and copper processing fees, substantial capital expenditure, and heightened financial leverage. In 2024, the company's revenue increased due to higher gold sales and prices, reaching CNY 7.58B, but profitability was affected by lower processing fees. China Chengxin noted that the stable outlook reflects the expectation that Hengbang's credit profile will remain steady over the next 12-18 months. The firm also expects to closely monitor Hengbang's safe production management and changes in the company's governance.