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Baoshan Steel projects 40% profit gain
By Richard Fu |
January 10, 2013, Thursday
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Online Edition
Online Edition
BAOSHAN Iron & Steel Co, China's largest listed steel mill, said net profit may have increased 40 percent last year as gains from asset sales offset a decline in its core business.
The company's unaudited net profit totaled 10.31 billion yuan (US$1.65 billion) in 2012, up from 7.36 billion yuan in 2011, according to a filing to the Shanghai Stock Exchange last night. Sales fell 14 percent to 191.5 billion yuan.
The Shanghai-based company has sold its loss-making stainless steel and special steel assets to parent Baosteel Group and has shut down its Luojing Corex Plant in Baoshan District due to high operating costs.
If deducting all the gains made from asset sales, the company's operating profit for 2012 would have fallen 33 percent to 6.2 billion yuan, Baoshan Steel said.
"After disposing of loss-making assets, the company has become a steel maker focused on high-quality carbon steel sheets," Qilu Securities analyst Du Hui wrote in a report today, adding that demand and profitability for its mainstay hot-rolled coil products will improve in 2013.
China's steel industry has been struggling with weakening demand, low steel prices and high raw material costs.
Baoshan Steel is due to report its audited annual results at the end of March.
The company's unaudited net profit totaled 10.31 billion yuan (US$1.65 billion) in 2012, up from 7.36 billion yuan in 2011, according to a filing to the Shanghai Stock Exchange last night. Sales fell 14 percent to 191.5 billion yuan.
The Shanghai-based company has sold its loss-making stainless steel and special steel assets to parent Baosteel Group and has shut down its Luojing Corex Plant in Baoshan District due to high operating costs.
If deducting all the gains made from asset sales, the company's operating profit for 2012 would have fallen 33 percent to 6.2 billion yuan, Baoshan Steel said.
"After disposing of loss-making assets, the company has become a steel maker focused on high-quality carbon steel sheets," Qilu Securities analyst Du Hui wrote in a report today, adding that demand and profitability for its mainstay hot-rolled coil products will improve in 2013.
China's steel industry has been struggling with weakening demand, low steel prices and high raw material costs.
Baoshan Steel is due to report its audited annual results at the end of March.
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