Citigroup has issued a research report initiating coverage on Maanshan Iron (00323) with a "Buy" rating and a target price of HK$2.8. The company anticipates a preliminary net loss of approximately 1.9 to 2.5 billion yuan for the previous year, which is better than the bank's earlier projection of a loss of around 5.35 billion yuan. Based on this calculation, the median net loss for Maanshan Iron in the fourth quarter of last year was approximately 304 million yuan, primarily impacted by asset impairments following its merger with Baosteel, with additional negative contributions from the performance of its associates. The bank expects that, although the fourth quarter remained a challenging period for the steel industry, the synergies from the merger with Baosteel will continue to be realized—including optimizations in selling, general, and administrative expenses and management integration—and estimates that Maanshan Iron's core business can still maintain profitability.