Jiangsu Lettall Electronic vs US HRC Steel: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Jiangsu Lettall Electronic Co Ltd (603629.CG)

Q3 202614 Jul – 28 Aug 2026

▲3

Litong Electronics profit surges 1,275% on AI computing power demand

Half-year profit explodes on AI computing power Litong Electronics' first-half 2026 net profit jumped 1,275% to 702 million yuan, with revenue up 38.6% and cash flow up 733%. Its AI computing power leasing business is booming, which is the core reason the stock is being re-rated higher.
This is the single biggest new fact driving the stock: a massive earnings beat tied directly to its AI computing power business.
5 billion yuan private placement for intelligent computing center Litong plans to raise up to 5 billion yuan to build an intelligent computing center. This signals management expects AI computing demand to keep growing and gives the company capital to expand capacity, supporting the stock price.
A large capital raise for AI infrastructure shows the company is investing to sustain growth, a forward-looking positive driver.
First cash dividend announced Litong will pay a cash dividend of 0.17 yuan per share, about 62 million yuan total. Paying a dividend for the first time signals confidence in future cash generation and rewards shareholders, a mild positive for the stock.
The dividend is a new capital-return event that reinforces the positive earnings story and investor confidence.
Manufacturing side still weak, but losses narrowing While AI computing power booms, Litong's metal parts manufacturing business faces weak end-market demand. The company is cutting losses through automation, but this drags on overall results and is a real counterweight to the AI-driven rally.
This is the main risk factor: the traditional manufacturing segment remains soft, so the rally depends heavily on AI computing power.

August 202614 Jul – 28 Aug 2026

▲3

Litong Electronics profit surges 1,275% on AI computing power demand

Half-year profit explodes on AI computing power Litong Electronics' first-half 2026 net profit jumped 1,275% to 702 million yuan, with revenue up 38.6% and cash flow up 733%. Its AI computing power leasing business is booming, which is the core reason the stock is being re-rated higher.
This is the single biggest new fact driving the stock: a massive earnings beat tied directly to its AI computing power business.
5 billion yuan private placement for intelligent computing center Litong plans to raise up to 5 billion yuan to build an intelligent computing center. This signals management expects AI computing demand to keep growing and gives the company capital to expand capacity, supporting the stock price.
A large capital raise for AI infrastructure shows the company is investing to sustain growth, a forward-looking positive driver.
First cash dividend announced Litong will pay a cash dividend of 0.17 yuan per share, about 62 million yuan total. Paying a dividend for the first time signals confidence in future cash generation and rewards shareholders, a mild positive for the stock.
The dividend is a new capital-return event that reinforces the positive earnings story and investor confidence.
Manufacturing side still weak, but losses narrowing While AI computing power booms, Litong's metal parts manufacturing business faces weak end-market demand. The company is cutting losses through automation, but this drags on overall results and is a real counterweight to the AI-driven rally.
This is the main risk factor: the traditional manufacturing segment remains soft, so the rally depends heavily on AI computing power.

Latest14 Jul – 28 Aug 2026

▲3

Litong Electronics profit surges 1,275% on AI computing power demand

Half-year profit explodes on AI computing power Litong Electronics' first-half 2026 net profit jumped 1,275% to 702 million yuan, with revenue up 38.6% and cash flow up 733%. Its AI computing power leasing business is booming, which is the core reason the stock is being re-rated higher.
This is the single biggest new fact driving the stock: a massive earnings beat tied directly to its AI computing power business.
5 billion yuan private placement for intelligent computing center Litong plans to raise up to 5 billion yuan to build an intelligent computing center. This signals management expects AI computing demand to keep growing and gives the company capital to expand capacity, supporting the stock price.
A large capital raise for AI infrastructure shows the company is investing to sustain growth, a forward-looking positive driver.
First cash dividend announced Litong will pay a cash dividend of 0.17 yuan per share, about 62 million yuan total. Paying a dividend for the first time signals confidence in future cash generation and rewards shareholders, a mild positive for the stock.
The dividend is a new capital-return event that reinforces the positive earnings story and investor confidence.
Manufacturing side still weak, but losses narrowing While AI computing power booms, Litong's metal parts manufacturing business faces weak end-market demand. The company is cutting losses through automation, but this drags on overall results and is a real counterweight to the AI-driven rally.
This is the main risk factor: the traditional manufacturing segment remains soft, so the rally depends heavily on AI computing power.

US HRC Steel (STEEL.COMM)

Q3 202624 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.

August 202624 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.

Latest24 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.