Hesteel maintained at AAA rating despite industry pressures

Despite challenges in the steel industry, including fluctuating prices and a recent dip in earnings, Hesteel's AAA rating was maintained by China Chengxin International Credit Rating. The rating reflects the backing of its shareholder, favorable scale and location, strong product competitiveness, and diverse funding channels. While noting a decline in recent income, profit, and cash flow, the agency acknowledges that Hesteel benefits from its parent company, HBIS Group, and its position as a key player in the Beijing-Tianjin-Hebei economic zone. Factors contributing to the stable outlook include strengths in production capacity and product mix, offset by ongoing relocation-related capital expenditures. Citing data from 2024, the report acknowledges a decrease in net profits compared to major competitors such as Ansteel and Baosteel. China Chengxin will continue to monitor Hesteel's financial performance, investment strategies, and any potential impact from policy changes.