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MarketScreener Homepage  >  Equities  >  Shanghai Stock Exchange  >  Baoshan Iron & Steel Co., Ltd.    600019   CNE0000015R4

BAOSHAN IRON & STEEL CO., LTD.

(600019)
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China Baosteel's first-half net profit tumbles, hurt by coronavirus, rising ore costs

08/27/2020 | 11:54pm EST
Labourer works at cold-rolling mill of Wuhan Iron & Steel Group on outskirts of Wuhan

Baoshan Iron & Steel Co Ltd, China's top listed steel producer, said on Thursday net profit slumped 36.87% in the first six months of 2020, pressured by the coronavirus pandemic and climbing raw material prices.

However, the company, known as Baosteel, expects demand for cold-rolled steel products to support second-half performance.

"Our cold-rolled sheets orders are good in the third quarter," it said in an earnings call on Friday, adding that iron ore prices are expected to fall in the fourth quarter but remain higher on average compared with last year.

The company reported net profit of 4.0 billion yuan ($581.45 million) for the first half, down from 6.34 billion a year earlier, in a filing to the Shanghai Stock Exchange. Its first-half revenue fell 7.9% to 129.8 billion yuan.

"Due to impact from the coronavirus, downstream demand for steel plunged in the first quarter ... (while) iron ore prices fluctuated within high range," the company said in a statement, adding that the steel sector recovered gradually in the second quarter though imported ore prices continued to dent profits.

For the period from April to June, Baosteel earned 2.47 billion yuan, Reuters calculations showed.

That was a jump of 60.6% from the first quarter, but still well below net profit of 3.46 billion yuan in the year-earlier period.

China's benchmark iron ore futures prices have surged more than 60% this year on supply-side disruptions from the pandemic, as well as resilient demand amid Beijing's stimulus measures to shore up a slowing economy.

Most listed steel firms reported big drops in net profit for the first half, with some down more than 40% on an annual basis.

In the first six months, Baosteel produced 22.43 million tonnes of steel products, down from 24.3 million in year-earlier period.

Baosteel is building a blast furnace in Zhanjiang in the southern province of Guangdong, which will bring new molten iron output to about 2 million tonnes in 2021.

($1=6.8794 Chinese yuan renminbi)

(Reporting by Min Zhang and Tom Daly; Editing by Kim Coghill and Clarence Fernandez)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BAOSHAN IRON & STEEL CO., LTD. 0.00% 6.38 End-of-day quote.11.15%
SHANGHAI A INDEX -0.48% 3555.2254 Real-time Quote.11.24%
SHANGHAI STOCK EXCHANGE B SHARES INDEX -2.73% 237.995 Real-time Quote.-7.33%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.23% 6.5637 Delayed Quote.-5.62%
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Financials
Sales 2020 281 B 42 776 M 42 776 M
Net income 2020 11 135 M 1 693 M 1 693 M
Net Debt 2020 44 599 M 6 779 M 6 779 M
P/E ratio 2020 12,4x
Yield 2020 4,12%
Capitalization 138 B 21 026 M 21 021 M
EV / Sales 2020 0,65x
EV / Sales 2021 0,60x
Nbr of Employees 52 323
Free-Float 29,7%
Chart BAOSHAN IRON & STEEL CO., LTD.
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Baoshan Iron & Steel Co., Ltd. Technical Analysis Chart | MarketScreener
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Technical analysis trends BAOSHAN IRON & STEEL CO., LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 6,98 CNY
Last Close Price 6,21 CNY
Spread / Highest target 38,8%
Spread / Average Target 12,4%
Spread / Lowest Target -14,0%
EPS Revisions
Managers
NameTitle
Ji Xin Zou Chairman
Yong Hong Zhu Chairman-Supervisory Board
Mei Fen He Member-Supervisory Board
Jin Gang Zhang Director
Han Sheng Yu Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
BAOSHAN IRON & STEEL CO., LTD.11.15%21 397
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