Angang Steel 347

Re: Angang Steel 347

Postby winston » Wed Jan 21, 2009 1:18 pm

Angang Steel shares dive after profit warning By Alison Leung

HONG KONG, Jan 21 (Reuters) - Shares in China's Angang Steel Co Ltd (0347.HK) fell as much as 12 percent on Wednesday after the firm forecast a bigger-than-expected 55 percent earnings drop in 2008 on high raw material costs and slumping steel prices.

The steel maker 000898.SZ, the listed arm of one of China's top steel makers Anshan Iron and Steel Group, said on Tuesday its net profit was seen falling to about 3.42 billion yuan ($500 million) last year based on Chinese accounting standards [ID:nSHA354440].

The earning guidance came in well below market consensus of 7.8 billion yuan from 18 analysts polled by Reuters Estimates.

"Though investors had expected a bad Q4 result, the magnitude of Angang's loss is surprising," UBS said in a research note on Wednesday.

Angang is forecast to post a loss of 4.8 billion yuan in the fourth quarter, hit also by a 1.8 billion yuan provision for the impairment loss of inventory, said Helen Lau, an analyst at Daiwa Institute of Research.

The stock hit a session low of HK$6.94 before recovering to HK$7.29, down 8 percent at noon. Its rival Maanshan Iron & steel (0323.HK)(600808.SS) lost 4.3 percent and Chongqing Iron & Steel (1053.HK)(601005.SS) eased 2.9 percent.

The index for major Chinese companies listed in Hong Kong .HSCE was down 2.4 percent.

Chinese steel makers are being hit by sharp profit declines as rampant growth fuelled by an economic boom ran out of steam over the last few months amid the global financial crisis.

UBS expects negative earnings surprises through the results season and a potential steel price correction in the near term will hang over China's steel industry, the largest in the world.

But BNP upgraded Angang to hold recently from sell due to a spot steel price rally on the back of China's policies to stimulate the economy.

"The worst is over. The result just reflects the terrible fourth quarter last year," said Lance He, an analyst at BNP Paribas.

"With the steel price rally, we expect earnings to recover sequentially from the first quarter of 2009," he added.
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Re: Angang Steel 347

Postby winston » Wed Jan 21, 2009 4:28 pm

Angang Steel Shares Decline After Reporting 55% Profit Drop By Helen Yuan

Jan. 21 (Bloomberg) -- Angang Steel Co., China’s second- largest steelmaker, dropped to the lowest in more than a month in Hong Kong trading after saying 2008 profit plunged 55 percent as demand and prices slumped in the global recession.

Angang Steel fell as much as 12 percent to HK$6.94, the lowest level since Dec. 12, and traded at HK$7.30 at 10:10 a.m. local time. Other Chinese steel stocks including Baoshan Iron & Steel Co. and Maanshan Iron & Steel Co. also declined.

The global recession has curbed demand by builders and carmakers, damped prices and turned mills unprofitable in October, the China Iron & Steel Association has said. Baosteel Group Corp., China’s biggest mill, has said it is facing its “most difficult” period since its founding 30 years ago.

Full-year profit fell to about 3.42 billion yuan ($500 million), and it may write off 1.81 billion yuan for losses incurred for its inventory, Angang Steel said yesterday. The earnings decline translates into a loss of 4.83 billion yuan in the fourth quarter, the Shanghai Securities News reported today.

Baoshan Steel, the listed unit of Baosteel, fell 1.3 percent to 5.28 yuan in Shanghai trading at 10:12 a.m. Maanshan Steel dropped 3.9 percent to HK$2.48 in Hong Kong.

Liuzhou Iron & Steel Co., a Chinese steelmaker, said today its 2008 profit plunged 98 percent partly because the May 12 earthquake in Sichuan province disrupted supply of raw materials. Liuzhou Steel fell 2.1 percent to 3.27 yuan at 9:51 a.m. in Shanghai.
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Re: Angang Steel 347

Postby winston » Thu Jan 22, 2009 2:34 pm

DJ MARKET TALK:Angang Off 0.6%;Goldman Keeps As Sell, Target HK$4

1215 [Dow Jones] Angang Steel (0347.HK) down 0.6% at HK$6.86, as early rebound to day's high of HK$7.15 quickly fizzles; stock tumbled 12.9% yesterday as profit warning indicated much bigger-than-expected 4Q08 losses. Goldman Sachs says 4Q earnings woes could be steel industry phenomenon given 34% on-quarter drop of steel prices, potential sharp inventory write-downs.

Adds, Angang mainly flat steel producer (90% of volume), global in nature; tips weakness in flat steel prices, Angang's FY09 earnings. Keeps FY09 earnings forecast of CNY3.08 billion, which already 54% below consensus. Keeps stock as Sell with HK$4.00 target price. Volume tapers off vs yesterday's hefty pace; day's low of HK$6.79 immediate support.
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Re: Angang Steel 347

Postby winston » Tue Feb 24, 2009 10:01 am

DJ MARKET TALK: Trading Buy Chance On Angang At HK$7.00 - UOBKH

0815 [Dow Jones] UOB KayHian says rising steel inventories putting pressure on steel prices and, thus, steel stocks. Still, positive spin to supposedly bad news on inventories is China currently in talks with 3 big ore suppliers on new iron ore prices; rising inventories means weak steel demand, thus will strengthen China's hand in negotiation.

House says there's attractive Trading Buy chance for Angang Steel (0347.HK), now close to suggested entry price of HK$7.00; keeps fundamental Buy on Maanshan Iron (0323.HK) with HK$3.70 target, as best proxy to China's stimulus package, particularly railway expansion initiative, but investors can wait for better entry levels below HK$2.50. Angang down 1.0% at HK$7.19 yesterday; Maanshan down 0.7% at HK$2.71, both underperformed vs HSI +3.8%.
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Re: Angang Steel 347

Postby winston » Wed Apr 15, 2009 10:53 am

DJ MARKET TALK: Angang Set To Fall; Bigger-Than-Expected 4Q Loss

0809 [Dow Jones] Angang Steel's (0347.HK) huge 4Q08 loss of CNY5.26 billion set to drag shares down, especially given stock's 11.9% leap to HK$9.97 yesterday amid strength in metal stocks. Full-year earnings fell 60.3% to CNY2.99 billion, is even lower vs CNY3.42 billion company tipped back in January when issuing profit warning, hurt by double whammy of rising raw-material costs and falling steel prices, resulting in inventory provision of CNY2.04 billion.

Final dividend cut to 21 fen/share vs 55 fen year-earlier. While big inventory provision may be one-off, outlook not promising with Angang saying it will continue to face downward pressure from domestic economy this year because of weak consumer markets. 10-day moving average at HK$8.67 for now unlikely troubled
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Re: Angang Steel 347

Postby winston » Fri Apr 17, 2009 10:48 am

DJ MARKET TALK: CS Tips Better 2H09 For Angang After 1H09 Trough

0927 [Dow Jones] STOCK CALL: Credit Suisse keeps Angang Steel (0347.HK) at Outperform, target HK$12.50 after management highlights recent pick up in demand in auto, home appliance, rail and construction sectors; notes however, container and export remained weak.

Expects overall unit profit to remain depressed in 1H09 on near-term destocking by mills and traders in April-May, before 2H09 improvement driven by stimulus demand, end of destocking cycle. Lowers 2009-10 EPS estimates by 36%, 11% reflect extended trough in 1H09.

"As we believe bad news to peak in April-May, this is the time, in our view, to turn more positive on steel stocks, in anticipation of the 2H09E improvement." Stock ended down 6.7% yesterday at HK$9.50.
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Re: Angang Steel 347

Postby winston » Fri Apr 17, 2009 10:56 am

DJ MARKET TALK:Angang Set To Rebound; End-User Demand Returns-UOB

0915 [Dow Jones] Angang Steel (0347.HK) likely to rebound after 6.7% post-results selloff yesterday to HK$9.50, helped by news it expects steel output to rise 19% this year, after Bayuquan steel and iron plant started operation in August; ED Fu Jihui adds Angang posted profit in January, February, as cost controls outweighed falling steel prices.

Stock may also get fillip from WSJ article iron-ore contract talks are breaking in favor of steelmakers' winning steep discounts, although Angang likely to benefit less vs peers as gets large portion of ore from parent company.

Separately, UOB KayHian upgrades stock to Buy from Hold, hikes target price to HK$12.40 vs HK$7.96, on early signs of end-user demand returning; says company still expects relatively weak product prices in 2Q09, but stronger prices in 3Q09 when China's macroeconomic picture should improve materially. Resistance at psychological HK$10.00 likely tested
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Re: Angang Steel 347

Postby winston » Sat Jun 27, 2009 8:49 am

Hmm... stimulus not helping ?

===============================

Angang Steel (000898.SZ) lost 3.46 percent to 13.69 yuan after saying it expected a first-half loss of up to 3 billion yuan on weak steel prices.
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Re: Angang Steel 347

Postby winston » Thu Jul 23, 2009 9:05 am

Angang to raise $1.3 bln via share sale, debentures

HONG KONG, July 23 (Reuters) - Angang Steel Co Ltd said late Wednesday it planned to raise about 8.8 billion yuan ($1.29 billion) through a share sale and issues of short term debentures for working capital and to improve its debt structure.

The Chinese steel maker (000898.SZ) (0347.HK) said it would seek approval for a plan to sell up to 217.16 million new H shares, or 20 percent of its H share capital, at a price to be determined.

The shares would be worth about HK$3.21 billion (US$415 million) based on Tuesday's closing price of HK$14.8, the company said. The stock ended at HK$14.92 on Wednesday.

Angang also said it planned to issue up to 6 billion yuan ($879 million) worth of short-term debentures in two tranches to institutional investors in China in a bid to lower its financing costs.

The debentures will have a maturity of up to 365 days and interest rates in the 2-2.5 percent range, it said.
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Re: Angang Steel 347

Postby winston » Thu Jul 23, 2009 4:04 pm

DJ MARKET TALK: Angang's Fundraising Plan A Topping Signal - UBS

1532 [Dow Jones] STOCK CALL: UBS keeps Angang Steel at Sell, target at HK$12.14 after company seeks mandate to issue HK$3.2 billion new share, based on yesterday's close of HK$5.30, CNY6 billion short-term debentures.

Says, while debt funding in domestic interbank debenture market sensible given abundant liquiditiies, low cost of capital in China, enlarged shares modest 3% dilution impact; yet could be topping signal given timing, decision for H-share placement. Stock +0.94% HK$5.35.
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