UBS has released a research report maintaining a "Neutral" rating on Angang Steel (00347) while raising its profit forecasts for 2025–2027. The company reported a narrowed net loss of RMB 2.04 billion year-on-year for the first nine months, though its Q3 performance fell significantly short of expectations. The outlook for Q4 remains weak, as peak-season demand was largely exhausted in Q3, and heating season restrictions may further dampen consumption in November and December.

The bank believes short-term earnings visibility remains unclear without a clear catalyst. However, despite near-term market softness, UBS expects stable steel demand in China next year. Angang Steel’s core products are poised to benefit from strong manufacturing performance. On the export front, with around 7% of revenue coming from overseas markets, the company is expected to gain from robust demand in Belt and Road countries and favorable price differentials.

UBS projects losses of RMB 3.126 billion and RMB 1.68 billion for 2025 and 2026, respectively, followed by a turnaround to an RMB 88 million profit in 2027. Accordingly, the target price has been raised from HK$1.7 to HK$2.45.