Magang 0323

Re: Magang 0323

Postby winston » Wed Jul 01, 2009 9:51 am

DJ MARKET TALK: DB Downgrades Maanshan To Sell; HK$4.20 Target

1527 [Dow Jones] STOCK CALL: Deutsche bank downgrades Maanshan Iron & Steel (0323.HK) to Sell from Buy with target at HK$4.20 as says stock looks quite expensive. Notes stock has gained 30% since May 1, though house expects steady margins, earnings recovery.

"The supply response combined with a potential demand weakness on sharply lower FAI growth lead us to expect steel prices to come off in July/August, a seasonally slow season for steel demand." Expects fixed-assets investment to fall sharply to 10% on-year in mid-2010 vs 40% in next 1-2 months.

Notes, steady rebound of steel prices in last nine weeks has attracted considerable idle capacity in operations. Estimates Maanshan to see 1H net income dropping 50% on-year, meaning company could issue profit warning no later than July 14. Stock down 3.6% at HK$4.87. HSI +0.13%.
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Re: Magang 0323

Postby winston » Mon Sep 07, 2009 2:38 pm

Not vested. It has gone up 700% since Oct 2008 ..

DJ MARKET TALK: MS Upgrades Maanshan Iron; Industry Stabilizing

1247 [Dow Jones] STOCK CALL: Morgan Stanley raises Maanshan Iron & Steel (0323.HK) to Equal-weight vs Underperform with recent industry stabilizing, steel prices bottoming as overproduction eases.

Notes Maanshan has fallen 24%, underperforming MSCI China index by 17%. Stock trading at 12x earnings, "fairly valued in our view, and mostly in-line with MSCI China."
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Re: Magang 0323

Postby winston » Sun Sep 13, 2009 10:36 am

DJ Maanshan Iron & Steel: Parent Buys 55.9M A Shares In Past Yr

HONG KONG (Dow Jones)--Maanshan Iron & Steel Co. (0323.HK) said Friday its parent has bought no more than 2% of the company in the past year.

The Chinese steel producer said its parent, Magang (Group) Holding Co., bought 55.9 million of its A shares on the Shanghai stock exchange between Sept. 12, 2008 and Sept. 11, 2009 as part of its plan to increase its shareholding.

Source: Jackie Cheung, Dow Jones Newswires
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Re: Magang 0323

Postby winston » Tue Oct 27, 2009 9:07 pm

DJ Maanshan Iron 3Q Net Profit Up 2% On Year On Cost Controls

HONG KONG (Dow Jones)--Chinese steel producer Maanshan Iron & Steel Co. (0323.HK) said Tuesday its net profit in the third quarter rose 2.0% from a year earlier, as stringent cost controls more than offset lower steel prices.

The Hong Kong and Shanghai-listed company said its net profit for the three months ended Sept. 30 was CNY802.3 million, up from a net profit of CNY786.7 million a year earlier, according to Chinese accounting standards.

Revenue fell 27% to CNY14.41 billion from CNY19.87 billion.

Cost of sales fell to CNY12.95 billion from CNY17.89 billion a year earlier on its stringent cost controls.

Maanshan is based in eastern China's Anhui province.

Source: Jackie Cheung, Dow Jones Newswires
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Re: Magang 0323

Postby winston » Tue Mar 16, 2010 2:53 pm

Not vested. From Phillips:-


Risk

Lacking demand may negatively influence the capability of passing on rising cost;
The train wheels business doesn`t recover as expected.


Recovered performance underpin the Buy rating

Taking consideration of rising prices and increased output, plus with the expectation of passing on rising cost, we forecast the revenues will be respectively RMB 52.4 and 69.8 billion in 2009 and 2010, with the -25% and 33% growth. Its profitability will increase steadily, and net profit will be 0.95 and 3.25 billion, with EPS at RMB 0.12 and 0.42.

Regarding the evaluation, we take the P/B valuation. Tracking the historical P/B for H share of Ma Steel, it had maintained at 0.3 X before 2003, and 0.9 X between 2004 and 2006, then 1.76 X in the boom period of 2007. Nowadays we are conservatively optimistic about Chinese economy and the performance of steel manufacturers will recover apparently. Basing on 1.35 times of leading P/B to 2010 BVPS, we estimate its 12-month target price at HKD 5.752 and recommend buy rating.
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Re: Magang 0323

Postby winston » Sat May 01, 2010 9:44 am

Not vested.

Earnings Risk/Valuation

The recent share price corrections may not fully reflect the lingering impact from macro tightening on the property sector, mounting cost pressure and reduced earnings contribution from its train wheel rims in 2010-11.

We reinitiate coverage on Magang with a SELL call and a fair price of HK$3.20.

Upside risks include earlier-than-expected production of newly-developed train wheels and higher-than-expected profitability for all types of productsdue to the company’s ability to pass on cost increases effectively.

Source: UOBKH
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Re: Magang 0323

Postby winston » Tue Sep 28, 2010 10:21 am

Up 6% on no news.

A lot of new construction coming up ?

PE is 85 now but the analysts will of course be asking you to look forward 2 years, to get a reasonable PE :P
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Re: Magang 0323

Postby winston » Fri Oct 21, 2011 9:32 am

not vested

DJ MARKET TALK: Maanshan Iron Likely To Fall After 3Q Results

0823 [Dow Jones] Maanshan Iron (0323.HK) is likely to fall after reporting its 3Q results, with its net profit falling 93% on quarter to CNY14.60 million, while its net profit for the nine months to September falls 69% on year to CNY325 million.

It says, during 3Q11, concerns in Europe and the U.S. kept intensifying and the risk of a global economic downturn increased, resulting in an overall downward trend of steel prices.

It adds the group's operating costs rose during the reporting period, as prices of raw materials and fuels remained at high levels and production costs for iron and steel enterprises increased.

Its 9M11 net profit marks just 45% of a FY11 net profit forecast of CNY725 million in a Thomson Reuters survey, which suggests some analysts' downgrades might be near. The stock ended up 0.5% at HK$1.92 Thursday.

Source: Dow Jones Newswire
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Re: Magang 0323

Postby winston » Mon Oct 24, 2011 3:30 pm

not vested

DJ MARKET TALK: JPM Cuts Maanshan Iron H-Share Target To HK$2.10

1505 [Dow Jones] STOCK CALL: JPMorgan cuts Maanshan Iron's (0323.HK) target to HK$2.10 from HK$3.00, after revising down its 2011 net profit forecast by 8.8%; the company's 9M11 profit was only 48% of the consensus estimate and it remains confident that street downgrades will occur.

It notes that Maanshan Iron's 93% on-quarter net profit in 3Q11 highlights the significant margin squeeze gripping the sector - a result of stubbornly high costs and lack of pricing power.

"While raw material costs are now falling, steel prices are sliding in tandem given weak demand, suggesting no relief from margin pressures in the near term."

The house keeps a Neutral call. The stock is up 6.1% at HK$2.08.

Source: Dow Jones Newswire
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Re: Magang 0323

Postby winston » Fri Apr 20, 2012 9:02 am

not vested

DJ MARKET TALK: Daiwa Cuts Maanshan Iron Forecasts But Keeps Buy

0823 [Dow Jones] STOCK CALL: Daiwa lowers Maanshan Iron's (0323.HK) FY12-13 EPS forecasts due to a deeper-than-forecast trough in 1Q12 EPS, but looks for sequential improvement going forward.

It says that although not enough to avoid a 1H12 loss, 2Q12 EPS should improve quarter-on-quarter on higher selling prices and lower input costs.

"We continue to see the stock as a high-beta, cheap play on a recovery in construction and railway spending in China by 2H12," Daiwa says.

It keeps Maanshan Iron at Buy with an unchanged target price of HK$3.00. The stock closed Thursday down 1.2% at HK$2.39.

Source: Dow Jones Newswire
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