This Chinese Steelmaker May Be Worth a Look. Yes, Really
- Delong has negative net debt, price-to-book ratio under one
- Stock up 50% this year; trades above 100-day moving average
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With Chinese steel prices down 13 percent since the announcement of U.S. tariffs and persistent fears of oversupply, there may be no investment play more contrarian right now than a Chinese steel company.
But Delong Holdings Ltd.’s fundamentals may yet lure investors into an industry grappling with excess supply and geopolitical ructions. The Singapore-listed Chinese steelmaker has negative net debt as well as price-to-free-cash flow and price-to-book ratios less than one. Its operating margin was third highest of any of its domestic competitors last year and its stock has momentum, trading above its 100- and 200-day moving averages.