Honglu Steel Structure Q1 Growth Contrasts With Sharp Share Price Drop
HEFEI, CHINA - May 19, 2026 - Honglu Steel Structure reported year-on-year growth in first-quarter revenue and profit, while its stock price remained volatile after a sharp single-day decline on May 13.
Economic Observer Online reported that the company’s operating performance improved in the first quarter, with production and order indicators continuing to expand. The market reaction, however, showed that investors were still weighing short-term sentiment, management changes, and broader weakness in the sector.
First-Quarter Results Point to Operating Growth
In the first quarter of 2026, Honglu Steel Structure generated RMB 5.242 billion in total operating revenue, up 8.87% year on year. Net profit attributable to shareholders reached RMB 148 million, up 8.07%, while net profit excluding non-recurring items rose 21.65% to RMB 140 million.
The stronger recurring-profit growth suggests that core profitability improved faster than headline net income during the period.
Key Operating Indicators
- Steel-Structure Output: First-quarter production reached 1.2038 million tonnes, up 14.75% year on year.
- New Contracts: New signed orders totaled about RMB 7.412 billion, up 5.10% year on year.
- Capacity Utilization: Full-year 2025 capacity utilization rose to 96.6%, reflecting stronger use of the company’s manufacturing base.
What Investors Are Watching
The company’s near-term investment case will depend on whether intelligent manufacturing can continue improving cost control and earnings quality. Market attention is also likely to remain focused on the recent board and management transition, sector-wide sentiment, and whether Honglu’s operating growth can reduce share-price volatility over time.