Citi gives MAS C.L. a "Buy" rating with a target price of 2.8 yuan

Citi published a research report indicating that Maanshan Iron & Steel (00323.HK) is expected to have a preliminary net loss of RMB 190 million to 250 million last year, better than the bank's expectation of approximately RMB 535 million. Based on this calculation, the median net loss for Maanshan Iron & Steel in the fourth quarter of last year is approximately RMB 304 million, mainly affected by asset impairment following the acquisition of Baosteel, while the performance of joint ventures also brought negative drag.

The bank expects that, although the fourth quarter of last year was still a difficult period for the steel industry, the synergy between Maanshan Iron & Steel and Baosteel will continue to be released (including optimization of selling and management expenses and management integration), estimating that Maanshan Iron & Steel's core business can still maintain profitability. The bank has given it a "Buy" rating with a target price of HKD 2.8