Maanshan Iron and Steel H Aktie

00323 MAANSHAN IRON 2.030 0.200 10.93% 142,004 70,678

2 weeks ago= China's Maanshan Steel Q3 net profit up 56 pct on higher volumes Maanshan Iron & Steel Co Ltd (SHA 600808; HK 0323) said net profit in the third quarter of 2008 rose 56.46 pct year-on-year to 786.7 mln yuan due to higher sales volume, which offset falling selling prices. In its third quarter report filed with the Shanghai Stock Exchange, the company said it produced 3.75 mln tons of pig iron, 4.08 mln tons of crude steel and 3.81 mln tons of steel products in 2007, up 5.63 pct, 4.08 pct and 4.67 pct respectively. Faced with falling prices, the company responded with adjusted production plans and sales strategies, it said. Operating revenue in the third quarter rose 44.68 pct year-on-year to 19.87 bln yuan. Earnings per share in the three months to September stood at 0.116 yuan, against 0.078 yuan a year earlier. During the first nine months of 2008, the steelmaker booked operating revenue of 57.6 bln yuan, up from 34.77 bln a year earlier, while net profit rose to 3.05 bln yuan from 1.61 bln a year earlier. Earnings per share for the first nine months amounted to 0.45 yuan, up from 0.25 yuan in the same period of 2007. Looking ahead, the company said that decreasing demand in the steel market is expected to continue for a period of time. The company said it will tie production more closely to sales, while seeking to further enhance quality and reduce cost. c reuters, etc anbei 1y daily

Maanshan Iron & Steel posted net profit of RMB766.9mn in 1Q08, up 39.8% yoy. Maanshan posted a first quarter net profit of RMB766.9mn according to PRC accounting standard, up 39.8% yoy. The bottom line represents around 23% of our 2008 earnings forecast of RMB3,306mn. Meanwhile, gross margin was flat at 10%, given a 77.5% rise in costs of goods sold. At the same time, we believe strong steel price, especially for long products, will be able to offset the surging raw material costs. We maintain our view that company’s average selling price will be up by 27% in 2008 given the strong steel price and company’s improving product mix, while unit production costs will be up by 24%. We maintain our 2008 earning forecast and target price on Maanshan. Reiterate BUY with a 6-month target price of $5.5, representing a 11.5x 2008 PER.

Ziel 5,5h$ profit 1.Q 767m yuan = 39,8% +