Baosteel Co.,Ltd.Alert:Preliminary earnings beat both DBe and Bloomberg consensus发布时间：2017-01-17 研究机构：德意志银行
Strong FY16 preliminary earnings.
Baosteel announced FY16 preliminary earnings on 17 Jan 2017. PreliminaryNPAT was indicated as being c. RMB8.8bn, up 770% YoY. This result wouldbeat both DB and market consensus, achieving 121% DB and 115%Bloomberg consensus estimates respectively. Baosteel has not announced anyquantitative details to explain the strong 4Q performance yet.
Positive FY17 Outlook, Reiterated Buy.
We believe Baosteel is likely to maintain its strong profitability on the back of1) China government’s continuous efforts for supply side reform, and 2)ongoing industrial restocking. Please see details in our report “Asia SteelIndustry – 2017 Outlook – ready for sustainable re-rating” published on 17 Jan,2017.