Xinxing Ductile Iron Pipes rating affirmed at AAA stable

China Chengxin International Credit Rating (CCXI) has affirmed its AAA credit rating with a stable outlook for Xinxing Ductile Iron Pipes (SZSE:000778) in its 2025 tracking report, citing strong shareholder support, leading market position, and sound debt structure. While maintaining the top rating, CCXI noted concerns over industry downturns, fluctuating raw material costs, and accounts receivable. The report highlighted a decline in 2024 revenue and profitability due to lower steel and iron prices, impacting cash flow from operations which stood at CNY 71.5M. The company's total debt stood at CNY 1782.2M as of March 2025. Despite these challenges, Xinxing Ductile Iron Pipes benefits from its parent company's strategic backing, especially with the 2024 take-over of smaller metallurgy subsidiaries. As a global leader in ductile iron pipe production, the company's strong R&D and manageable debt levels contribute to its AAA rating.