<Earnings First Take> AnSteel 4Q21 loss as expected (NEUTRAL)
AnSteel’s 2021’s results were below market and in line with our expectation. According to the company’s announcement, the indicated results were c.2% better than our estimate.
Based on the company’s preliminary estimate, net profit would increase 256% y-o-y to RMB7,040m on higher steel products price and margin in 2021.
Suffering from the higher energy cost and power shortage, implied net loss reached RMB550m in 4Q21, turning from a profit of RMB700m a year ago in the same period.
Meanwhile we maintain our conservative view on the local steel market price outlook considering the risk of possible industry supply rebound.
