MAANSHAN IRON Shares Surge Nearly 6% in Afternoon Trading as Steel Sector Shows Recovery in March

Stock News
04/09

MAANSHAN IRON (00323) saw its shares rise by nearly 6% during afternoon trading. At the time of writing, the stock was up 5.95%, trading at HK$2.85 with a turnover of HK$46.18 million. According to a Mysteel report, the Purchasing Managers' Index (PMI) for China's steel industry reached 50.6% in March, an increase of 3.9 percentage points from the previous month, signaling a return to expansion territory and indicating a recovery in the sector's performance. Bohai Securities noted that while rising raw material costs may squeeze steel mill profits, sustained demand recovery in April could provide further support for steel prices. Conversely, if demand growth slows, mills may face increased cost pressures. Investors are advised to monitor developments related to industry consolidation efforts. In a separate research report, Huatai Securities disclosed that MAANSHAN IRON reported annual revenue of RMB 77.52 billion, down 5.25% year-on-year, with a net loss of RMB 209 million, narrowing by 95.51% compared to the previous year. The bank attributed the reduced losses to improved product mix and effective cost control measures, though net profit fell short of expectations due to asset impairment provisions. Looking ahead, a recovery in industry sentiment, combined with the company's ongoing efforts to optimize its profit structure and enhance efficiency, is expected to support a sustained improvement in profitability.

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