# CITIC Pacific Special Steel Group (000708.SHE)

Canonical: https://gigainvestors.com/s/000708.SHE

Analysis as of: 2026-10-16T07:35:56.708Z. Financial observations: FY2019–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 13.00 per share; close as of 2026-10-15.

Estimated value: low CNY 21.11 per share, central CNY 23.89 per share, high CNY 27.57 per share. Buy at or below the central value CNY 23.89 per share. Valuation as of 2026-10-16T07:35:56.708Z; scenarios are not confidence intervals.

Expected annual return: 16.7% at the stated quote. About 16.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 7 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.09×

- FY2020: 0.10×

- FY2021: 0.09×

- FY2022: 0.09×

- FY2023: 0.06×

- FY2024: 0.05×

- FY2025: 0.07×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 15.8%

- ROIC, second-lowest year: 9.7%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 14.4%

- Recent gross margin (lower of latest and 3-year median): 12.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 17.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 20.4%

- FY2020: 18.5%

- FY2021: 19.5%

- FY2022: 15.8%

- FY2023: 9.7%

- FY2024: 8.4%

- FY2025: 10.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.42×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 45B

- Net income, five-year total: CNY 32B

- Return on incremental invested capital: 12.0%

- Working capital / revenue, annual change: 3.7 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.07×

- FY2022: 1.21×

- FY2023: 1.47×

- FY2024: 1.87×

- FY2025: 1.70×

### management: fail

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 19.5% vs 9.7%

- Per-share earnings: 1.19 to 1.08 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 1.6%

- Diluted shares, 5-year annual growth: 1.6%

- Per-share value growth: -2.4%

- Per-share value change: CNY -0.11

- Per-share value, starting three-year median: CNY 1.19

- Per-share value, ending three-year median: CNY 1.08

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 19.5%

- ROIC, last three-year median: 9.7%

Chart: Earnings per share; fiscal year observations.

- FY2019: CNY 1.08

- FY2020: CNY 1.19

- FY2021: CNY 1.54

- FY2022: CNY 1.29

- FY2023: CNY 1.13

- FY2024: CNY 1.00

- FY2025: CNY 1.08

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.67×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -3.5%

- FY2020: -7.3%

- FY2021: -5.9%

- FY2022: -7.0%

- FY2023: -4.2%

- FY2024: -5.1%

- FY2025: -3.6%

## Holders

## Price story

Down 43% since Feb 2022 · sales -1.9%

Story as of 2026-10-16T10:00:06.366Z; price observation 2026-10-15.

Price needs cash profits to shrink 7.3% a year for ten years

### Sales · FY2024–2025

sales -1.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: CNY 73B 

- FY2020: CNY 76B 

- FY2021: CNY 99B 

- FY2022: CNY 98B 

- FY2023: CNY 114B 

- FY2024: CNY 109B 

- FY2025: CNY 107B 

### Gross margin · FY2025

gross margin 14%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: 17.3% 

- FY2020: 17.1% 

- FY2021: 16.5% 

- FY2022: 14.4% 

- FY2023: 12.7% 

- FY2024: 12.3% 

- FY2025: 14.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are CNY 107.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2025: revenue 107110624000; grossProfit 14945803000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000708.SHE: CITIC Special Steel Group Co., Ltd. engages in the manufacture and sale of steel materials in China. It offers bearing, gear, non-quenched and tempered free cutting, spring, mooring chain, and energy steel, as well as continuous casting round billet; pipeline steel, ship and ocean engineering steel, rack steel, container steel, boiler steel, nickel series ultra-low temperature steel, high-strength steel, wear-resistant steel, steel for wind power, die steel, bridge steel, and steel for high buildings; and special steel wire, including fastener, spring, cord, wire-rope, and carbon structural steel, as well as special steel wire for welding electrode. The company also provides oil casing, oil tubing, line pipe, ocean engineering structural pipe, ocean bracing pipe, structural alloy pipe, boiler tube, nuclear power pipe, fertilizer pipe, mechanical tube, cracking tube, fluid transmission pipeline, cylinder tube, and cylinder line; tool and die steel, ultra-high strength steel, corrosion resistant alloy, and stainless steel; and leaf spring, and guide arm. Its products are used for automobile manufacturing, rail transit, engineering machinery, electrical energy, petrochemical engineering, machine, shipbuilding, bridge construction, nuclear power, petroleum, gas, marine engineering, chemical engineering, railway transportation, wind power, water power, die, high buildings, ship and ocean engineering, and turbine applications. CITIC Special Steel Group Co., Ltd. was formerly known as Citic Pacific Special Steel Group Co., Ltd and changed its name to CITIC Special Steel Group Co., Ltd. in October 2026. The company was founded in 1993 and is based in Jiangyin, China. CITIC Special Steel Group Co., Ltd. operates as a subsidiary of CITIC Pacific Special Steel Investment Limited.

### Why customers stay

Margins ranged from 12.3% to 14% during 2023–25; it earns 15.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2023: grossProfit / revenue = 12.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2024: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2025: grossProfit / revenue = 14%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); 7-year return on capital observations [[2019,0.20424533920126522],[2020,0.18488724416400915],[2021,0.19540836039789575],[2022,0.15845605723983977],[2023,0.09694722514123394],[2024,0.08380769399205185],[2025,0.106355172166197]]; median 0.15845605723983977. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 7 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2019: growth capex 0; upkeep 2446886000; owner earnings 5877048552. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2020: growth capex 128803185; upkeep 3045748815; owner earnings 6032162890. Growth capex / owner earnings = 0.021352736547205542.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2021: growth capex 0; upkeep 2523724000; owner earnings 8336827888.964. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2022: growth capex 0; upkeep 1787904000; owner earnings 8581329864.704. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2023: growth capex 0; upkeep 1997389000; owner earnings 8399596847.448. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2024: growth capex 0; upkeep 552422375; owner earnings 9582196505.284. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); FY2025: growth capex 0; upkeep 769985434; owner earnings 10062008642.792. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); Dividend observations: [[2019,4441837000],[2020,2968908000],[2021,4228979000],[2022,7185160000],[2023,4583734000],[2024,3713500561],[2025,3569431348]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 83.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000708.SHE SharesStats.PercentInsiders = 83.851 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 7.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:56.708Z); Ten-year compound average after fade. Initial solved rate -0.11443682446034534. Price 13; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 7.21 per share

- 2016-11: CNY 7.42 per share

- 2016-12: CNY 7.49 per share

- 2017-01: CNY 7.97 per share

- 2017-02: CNY 8.10 per share

- 2017-03: CNY 7.65 per share

- 2017-04: CNY 7.03 per share

- 2017-05: CNY 6.52 per share

- 2017-06: CNY 6.82 per share

- 2017-07: CNY 7.66 per share

- 2017-08: CNY 7.86 per share

- 2017-09: CNY 8.08 per share

- 2017-10: CNY 7.26 per share

- 2017-11: CNY 7.22 per share

- 2017-12: CNY 6.72 per share

- 2018-01: CNY 6.82 per share

- 2018-02: CNY 6.62 per share

- 2018-03: CNY 6.04 per share

- 2018-04: CNY 5.92 per share

- 2018-05: CNY 5.84 per share

- 2018-06: CNY 5.37 per share

- 2018-07: CNY 5.42 per share

- 2018-08: CNY 5.74 per share

- 2018-09: CNY 5.91 per share

- 2018-10: CNY 5.43 per share

- 2018-11: CNY 5.35 per share

- 2018-12: CNY 5.16 per share

- 2019-01: CNY 5.57 per share

- 2019-02: CNY 6.61 per share

- 2019-03: CNY 7.34 per share

- 2019-04: CNY 7.78 per share

- 2019-05: CNY 7.37 per share

- 2019-06: CNY 7.47 per share

- 2019-07: CNY 7.68 per share

- 2019-08: CNY 8.50 per share

- 2019-09: CNY 9.42 per share

- 2019-10: CNY 11.59 per share

- 2019-11: CNY 13.63 per share

- 2019-12: CNY 13.49 per share

- 2020-01: CNY 12.58 per share

- 2020-02: CNY 16.05 per share

- 2020-03: CNY 14.77 per share

- 2020-04: CNY 16.01 per share

- 2020-05: CNY 15.84 per share

- 2020-06: CNY 17.10 per share

- 2020-07: CNY 19.53 per share

- 2020-08: CNY 18.07 per share

- 2020-09: CNY 16.51 per share

- 2020-10: CNY 16.13 per share

- 2020-11: CNY 20.98 per share

- 2020-12: CNY 21.79 per share

- 2021-01: CNY 27.90 per share

- 2021-02: CNY 28.13 per share

- 2021-03: CNY 26.40 per share

- 2021-04: CNY 25.88 per share

- 2021-05: CNY 23.70 per share

- 2021-06: CNY 20.84 per share

- 2021-07: CNY 21.99 per share

- 2021-08: CNY 25.48 per share

- 2021-09: CNY 20.50 per share

- 2021-10: CNY 19.05 per share

- 2021-11: CNY 20.40 per share

- 2021-12: CNY 20.48 per share

- 2022-01: CNY 21.70 per share

- 2022-02: CNY 22.99 per share

- 2022-03: CNY 19.95 per share

- 2022-04: CNY 18.04 per share

- 2022-05: CNY 19.43 per share

- 2022-06: CNY 20.15 per share

- 2022-07: CNY 20.02 per share

- 2022-08: CNY 19.77 per share

- 2022-09: CNY 17.62 per share

- 2022-10: CNY 16.10 per share

- 2022-11: CNY 17.90 per share

- 2022-12: CNY 17.16 per share

- 2023-01: CNY 18.23 per share

- 2023-02: CNY 20.41 per share

- 2023-03: CNY 17.78 per share

- 2023-04: CNY 16.15 per share

- 2023-05: CNY 15.09 per share

- 2023-06: CNY 15.84 per share

- 2023-07: CNY 16.74 per share

- 2023-08: CNY 14.19 per share

- 2023-09: CNY 14.81 per share

- 2023-10: CNY 14.51 per share

- 2023-11: CNY 14.26 per share

- 2023-12: CNY 14.04 per share

- 2024-01: CNY 13.80 per share

- 2024-02: CNY 14.57 per share

- 2024-03: CNY 15.10 per share

- 2024-04: CNY 15.57 per share

- 2024-05: CNY 15.09 per share

- 2024-06: CNY 13.57 per share

- 2024-07: CNY 12.45 per share

- 2024-08: CNY 11.53 per share

- 2024-09: CNY 13.64 per share

- 2024-10: CNY 12.09 per share

- 2024-11: CNY 11.81 per share

- 2024-12: CNY 11.41 per share

- 2025-01: CNY 11.65 per share

- 2025-02: CNY 12.18 per share

- 2025-03: CNY 12.35 per share

- 2025-04: CNY 11.71 per share

- 2025-05: CNY 11.37 per share

- 2025-06: CNY 11.76 per share

- 2025-07: CNY 12.93 per share

- 2025-08: CNY 13.06 per share

- 2025-09: CNY 13.62 per share

- 2025-10: CNY 14.59 per share

- 2025-11: CNY 15.15 per share

- 2025-12: CNY 16.37 per share

- 2026-01: CNY 16.42 per share

- 2026-02: CNY 18.03 per share

- 2026-03: CNY 16.34 per share

- 2026-04: CNY 15.25 per share

- 2026-05: CNY 14.14 per share

- 2026-06: CNY 12.62 per share

- 2026-07: CNY 14.98 per share

- 2026-08: CNY 13.75 per share

- 2026-09: CNY 13.11 per share

- 2026-10: CNY 13.13 per share

## Annual estimated value (CNY per share)

- FY2023: low CNY 21.21 per share, central CNY 23.97 per share, high CNY 27.63 per share

- FY2024: low CNY 20.99 per share, central CNY 23.70 per share, high CNY 27.32 per share

- FY2025: low CNY 20.30 per share, central CNY 22.86 per share, high CNY 26.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:39.928Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.