Stock

Guangdong Zhongnan Iron & Steel Co.

000717.SZ

Steel · Basic Materials

Price

¥2.18

-0.01 (-0.46%)

Market Cap

¥5.28B

Exchange

Shenzhen Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Sep 16, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

Dividends

Good

Track this stock — start free trial

§Winston Score History

The full picture

Guangdong Zhongnan Iron & Steel is a Chinese steel producer based in Guangdong province. It makes steel products like rebar, wire rod, and other construction-grade steel used mainly by builders and infrastructure projects. The company is one of the larger steelmakers in southern China.

Zhongnan Iron & Steel earns revenue by selling steel products, with prices tied to commodity markets and construction demand. It operates primarily in China's domestic market and has a market capitalization of roughly $5.3 billion. The company benefits from its location near major construction markets in southern China, but its recent financials show negative operating margins, reflecting the pressure from overcapacity and weak demand in China's steel industry. A sustained recovery in Chinese construction activity would be a key growth driver, while continued property sector weakness and thin margins remain significant risks.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-77.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

¥515M/ year

↓ Declining (-17% vs prior year)

2.0% of revenue

Below sector average (3%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

53.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥4.3B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Guangdong Zhongnan Iron & Steel Co.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.7% over 3y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.44B (2022) → 2.42B (2025)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

4.1%

Thin — 4.1% gross margin

Profit after running costs

Operating Margin

0.5%

Thin — 0.5% operating margin

Return on the money invested

ROCE

-7.7%

Weak — -7.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

-7.3%

Shrinking sales (-7.3% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

3.1%

Thin free cash flow (3.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

1.10

Elevated debt (1.10)

Covers its interest

Interest Cover

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

1.38%

Small dividend — 1.38% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+69.3%

Dividend growing fast (69.3% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial