UBS: Maintains "Neutral" rating on Angang Steel (00347) and raises target price to 2.45 Hong Kong dollars.

UBS released a research report stating that it raised its profit forecast for Angang Steel (00347) for the years 2025 to 2027, maintaining a "Neutral" rating. The net loss for the first nine months narrowed by 2.04 billion yuan year-on-year, but the performance in the third quarter was significantly below expectations. The outlook for the fourth quarter remains weak, as the peak season demand has already been released in the third quarter, and the heating season may inhibit consumption in November and December. The bank believes that in the absence of clear catalysts, the short-term profit outlook is uncertain. However, despite the short-term soft market, the bank believes that China's steel demand will remain stable next year. Angang Steel's core products will benefit from strong performance in the manufacturing sector. In terms of exports, as about 7% of Angang Steel's revenue comes from overseas markets, it is expected that the company's exports will benefit from strong demand and favorable price differentials in Belt and Road countries. It is expected to incur losses of 3.126 billion and 1.68 billion yuan respectively in the next two years, while in 2027 it is expected to turn a profit of 8.8 million yuan, with the corresponding target price raised from 1.7 Hong Kong dollars to 2.45 Hong Kong dollars.