Magang 0323

Magang 0323

Postby winston » Fri Jul 11, 2008 9:46 am

BROKER CALL- Maanshan Iron and Steel H-shrs upgraded to 'outperform' -Macquarie

BEIJING (XFN-ASIA) - Macquarie has upgraded China's Maanshan Iron and Steel's Hong Kong-listed shares to "outperform" from "neutral", with strong steel prices offsetting the company's rising raw material costs.

Sharp rises in spot hot-rolled coil prices in China have created a strong potential upside for the company's earnings, Macquarie said in a note.

"We anticipate that we will see further steel price forecast increases so we believe there continues to be upside risk," it said.

The company's share price has fallen substantially in recent weeks, with iron ore and coking coal prices soaring, making Maanshan "the cheapest stock in our Chinese steel universe," Macquarie noted.

It has raised its earnings forecast for the company by 4 pct for 2008 and 3 pct for 2009 "to reflect sharp steel price rises and new raw material assumptions."

Macquarie's target price for Maanshan Iron and Steel remains unchanged at 5.10 hkd.

The company closed today at 4.76 hkd.
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Re: Magang 0323

Postby winston » Tue Jul 15, 2008 11:27 am

BROKER CALL - China's Maanshan H-shrs upgraded to 'buy' - UBS

BEIJING (XFN-ASIA) - UBS has upgraded Maanshan Iron and Steel's Hong Kong-listed shares to "buy" with the company's interim results expected to outperform consensus estimates.

The company is expected to have earned net profits of 1.9 bln yuan in the first half of the year, with gross margins expanding to 12.6 pct, UBS said in a note to investors.

"Maanshan's low margins mean it is more leveraged to steel price changes and should benefit in an inflationary environment," the note said.

While a modest price correction is expected in the third quarter of this year, downside will be limited because of capacity shutdowns during the Olympics, reasonably high demand and a "stubborn high cost base", UBS added.

The company should also benefit not only from higher prices but also from an improvement in its product mix and an increase in output at its 5-mln ton plant in western China, it said.

Maanshan is also relatively undervalued, having fallen 22 pct since June.

UBS's target price for the company is 6.25 hkd.
It ended today at 5 hkd.
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Re: Magang 0323

Postby winston » Tue Aug 19, 2008 8:41 am

Not vested.

Maanshan first-half profit doubles on prices, volumes
Stephanie Tong

The interim net profit of Maanshan Iron and Steel (0323) doubled to 2.26 billion yuan (HK$2.57 billion) this year on increased sales prices and volumes.

The company said net profit in the first half surged 103.5 percent from a year ago. Earnings per share rose to 33.46 fen. No interim dividend was declared. Turnover leaped 78.5 percent to 37 billion yuan.

"Maanshan captured the market opportunities brought by rising steel product prices. We closely follow pricings in the market and boost sales of high value-added products," said company chairman Gu Jianguo.

Under Chinese accounting standards, train wheels and rims have the highest gross profit margin of 31 percent among the five major steel products sold by Maanshan. Sales volume of the product rose 16.67 percent to 140,000 tonnes.

Shares of Maanshan closed at HK$3.29 yesterday, down 6.27 percent.
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Re: Magang 0323

Postby winston » Tue Jan 13, 2009 2:31 pm

BROKER CALL - China's Maanshan 'buy;' worst may be over for steel sector - UOB

BEIJING (XFN-ASIA) - UOB Kay Hian said it is raising Hong Kong-listed Maanshan Iron & Steel Co Ltd to "buy" from "hold," and noted signs that the worst may be over for the steel sector. In a note to investors, UOB said re-stocking by steel traders has raised prices of steel products for eight straight weeks.

As a result, the firm has raised its China steel sector rating to "marketweight' from "underweight" with Maanshan the "top buy" with a target price of 3.20 hkd. UOB also raised its recommendation on Angang Steel Co Ltd to "hold" from "sell" with a target price of 7.96 hkd. At the end of morning trading in Hong Kong, Maanshan was up 3.91 pct at 2.66 hkd, and Angang was up 1.79 pct at 7.95 hkd.
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Re: Magang 0323

Postby winston » Wed Jan 14, 2009 3:03 pm

BROKER CALL HK-listed Maanshan Iron target hiked to 3.50 hkd - Morgan Stanley

BEIJING (XFN-ASIA) - Morgan Stanley said it is raising its target price on Maanshan Iron & Steel Co Ltd to 3.50 hkd from 2.80. "We believe Maanshan stands to benefit from higher infrastructure spending; the company derives half of its revenue from long products and has direct exposure to train wheels and rims," Morgan Stanley said in a note to investors. The recommendation on the stock is "overweight." At the close of morning trading, Hong Kong-listed Maanshan was up 3.45 pct at 2.7 hkd
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Re: Magang 0323

Postby winston » Mon Jan 19, 2009 3:31 pm

DJ MARKET TALK:Macquarie Downgrades Maanshan Iron To Underperform

1407 [Dow Jones] STOCK CALL: Macquarie downgrades Maanshan Iron (0323.HK) to Underperform, sets target at HK$2.00 (previous rating, target not provided) on near-term earnings risks after cutting Chinese steel price forecasts by around 15%.

Lowers FY08-09 EPS forecasts by 19%, 24%. Says while raw material prices have dropped, impact of falling prices has been larger. Says company better leveraged to infrastructure-cycle recovery due to long-product exposure, but its profitability is lower.

"In an environment where prices and volumes are falling, Maanshan is at much greater risk of losing large amounts of money. An improvement in volumes would be positive but we think this will not occur until well into 2H09." Shares down 0.7% at HK$2.72.
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Re: Magang 0323

Postby winston » Fri Feb 27, 2009 11:05 am

DJ MARKET TALK:Maanshan Bid Down 3.4%; May Offer Buy Opportunity

0947 [Dow Jones] Maanshan Iron (0323.HK) down 3.4% at HK$2.28 at pre-open after profit warning; UOB KayHian expects stock will come under selling pressure today, but weakness good chance to scoop up stock as warning partly priced in stock's recent slide, trades at 0.6X FY09 price-to-book at Wednesday's close. Believes shares will recover similarly to Angang Steel's (0347.HK) recovery after profit warning. Stays positive on Maanshan as expects governments' infrastructure spending to pick up in 2Q09. Keeps Buy call, HK$3.70 target price
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Re: Magang 0323

Postby winston » Fri Feb 27, 2009 4:20 pm

DJ MARKET TALK: GS Keeps Buy On Maanshan Iron Despite Pft Warning

1221 [Dow Jones] STOCK CALL: Goldman Sachs keeps Maanshan Iron (0323.HK) at Buy despite company's profit warning; Maanshan Thursday said it expects 2008 net profit to fall 71% to CNY717 million under mainland accounting standards. GS says profit warning implies net loss CNY2.3 billion in 4Q08 vs bank's forecast of CNY1 billion. Says weak 4Q08 result consistent with industry trend despite degree of loss being larger than expected due to higher operational leverage.

GS stays positive on Maanshan given combination of low valuation, potential 2Q infrastructure induced construction demand pickup. Weak result largely priced in, given stock's current 0.6x FY09 estimated P/B vs trough level of 0.5x. Targets HK$4. Stock down 3.8% at HK$2.27; HSI up 0.4%.(
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Re: Magang 0323

Postby winston » Wed Apr 15, 2009 11:21 am

DJ MARKET TALK: Further Maanshan Iron Upside May Be Limited - UBS

1003 [Dow Jones] STOCK CALL: Potential upside in Maanshan Iron (0323.HK) could be limited from here after rally over past month, UBS says. Says rally due to stronger-than-expected loan growth and liquidity, and China's demand recovery, despite steel price weakness. Adds however, China's next stimulus plan likely to shift focus to domestic consumption, favoring Maanshan less.

Says risk-reward outcome not appealing as still expects steel price to stabilize and recover modestly near-term before softening again on lower input cost, supply overshoot. Plans to review Buy rating, HK$3.38 target price after analyst meeting Thursday. Shares down 3.2% at HK$3.32, but up 54.4% vs March 3 closing low at HK$2.15
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Re: Magang 0323

Postby winston » Wed May 06, 2009 2:30 pm

DJ MARKET TALK: Citi Keeps Maashan Iron At Sell, Target HK$1.84

1206 [Dow Jones] STOCK CALL: Citigroup keeps Maanshan Iron & Steel (0323.HK) at Sell with target HK$1.84 after holding call with company; notes some volume improvement, but adds "the company isn't out of woods yet" given losses on majority of products in April. Says firm has no problem obtaining May orders, but still too early to say on June situation; adds, main problem not obtaining orders, but instead low pricing.

Notes long product sales stronger than flat, highlighting infrastructure-led demand, oversupply in flat. Notes company not seeing obvious pickup in demand, but seasonality, better weather conditions leading to many projects starting, resuming construction; may boost demand for certain products. Stock flat at HK$3.80; HSI up 0.1%.
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