CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

Equity Bottom-Up

Maanshan Iron & Steel H / Equity Bottom-Up

<ul><li>This is our new monthly series to look at steel demand as a proxy for the Chinese economy.</li><li>We look at steel inventories and how they have changed since our last visit We look at steel prices in China and how they have changed.</li><li>We explain why the newsflow on steel is wrong and why you need to read our monthly on the ground steel reports.</li><li>We found very different activity this year compared to any other post-Chinese New Year.</li><li>We will give you our views on the stocks and what we see actually on the ground which is very different than what investors are reading in the news.</li></ul>

This is our new monthly series to look at steel demand as a proxy for the Chinese economy.We look at steel inventories and how they have changed since our last visit We look at steel prices in China and how they have changed.We explain why the newsflow on steel is wrong and why you need to read our monthly on the ground steel reports.We found very different activity this year compared to any other post-Chinese New Year.We will give you our views on the stocks and what we see actually on the ground which is very different than what investors are reading in the news.

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

After meeting with steel and aluminum executives at the White House on March 1, President Donald Trump announced that he'll be enacting a 25% steel tariff next week. It is unclear, however, if this approach will be applied in a blanket fashion to all countries or only to a targeted list of countries. In its Feb. 16 Section 232 report, the blanket tariffs proposed by the U.S. Department of Commerce were 24% for all steel imports, which is less severe than the figures indicated by Trump on March…

After meeting with steel and aluminum executives at the White House on March 1, President Donald Trump announced that he'll be enacting a 25% steel tariff next week. It is unclear, however, if this approach will be applied in a blanket fashion to all countries or only to a targeted list of countries. In its Feb. 16 Section 232 report, the blanket tariffs proposed by the U.S. Department of Commerce were 24% for all steel imports, which is less severe than the figures indicated by Trump on March…

Minimal Impact on Our Asian Steel Coverage Following U.S.Steel Import Tariffs; FVEs Unchanged

Angang Steel Co Ltd (H) / Equity Bottom-Up

<ul><li>Wire rode inventory up and rebar inventory lower than last visit last August 2017.</li><li>Only one truck we found at the traders showing little activity.</li><li>At the traders,  wire rod was around RMB 3900-4000 which was lower than last month.</li><li>HRC’s price is around RMB 4400.</li><li>Most of the small traders said they had no inventory going into Chinese New Year.</li></ul><ul><li>Bigger traders are still busy.</li><li>We will visit again after Chinese New Year in March when we expect to see the construction sector pick up again in the north of China.</li><li>Angang has shot up in January eliminating the long product premium of Magang.</li></ul>

Wire rode inventory up and rebar inventory lower than last visit last August 2017.Only one truck we found at the traders showing little activity.At the traders,  wire rod was around RMB 3900-4000 which was lower than last month.HRC’s price is around RMB 4400.Most of the small traders said they had no inventory going into Chinese New Year.Bigger traders are still busy.We will visit again after Chinese New Year in March when we expect to see the construction sector pick up again in the north of China.Angang has shot up in January eliminating the long product premium of Magang.

Information Technology Consultant

Ishita Jain

As per the Financial Times ("FT") <a href="https://www.ft.com/content/4f88cb60-f8f7-11e6-bd4e-68d53499ed71" target="_blank">article</a> dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to secure supplies of Cobalt. This has been driven by the fact the a handful of hedge funds have purchased and stored Cobalt on expectations that the demand for EVs will pick up. Battery producers such as Panasonic, who supply Lithium Ion ("Li-ion") batteries to the likes of Tesla are hard pressed for supplies. As FT reported, prices have risen by more…

As per the Financial Times ("FT") article dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to secure supplies of Cobalt.   This has been driven by the fact the a handful of hedge funds have purchased and stored Cobalt on expectations that the demand for EVs will pick up. Battery producers such as Panasonic, who supply Lithium Ion ("Li-ion") batteries to the likes of Tesla are hard pressed for supplies.  As FT reported, prices have risen by more…

Baoshan Iron & Steel Co A / Equity Bottom-Up

No-moat Baosteel’s 2016 net income is expected to increase by about 770% year over year to CNY 8.8 billion. The results beat our expectations, exceeding our full year estimate by about 10%. Management attributed the strong performance to higher sales volume and effective cost-cutting measures.We believe that Baosteel has benefited from the strong recovery in steel prices in China, and we expect steel prices to remain firm in the near term. Nonetheless, given that the stronger prices are driven primarily by cost support stemming from higher iron ore and coal prices, we think margin pressure would make it difficult for the firm to repeat its stellar results.Analyst: Phillip Zhong

No-moat Baosteel’s 2016 net income is expected to increase by about 770% year over year to CNY 8.8 billion. The results beat our expectations, exceeding our full year estimate by about 10%. Management attributed the strong performance to higher sales volume and effective cost-cutting measures.We believe that Baosteel has benefited from the strong recovery in steel prices in China, and we expect steel prices to remain firm in the near term. Nonetheless, given that the stronger prices are driven primarily by cost support stemming from higher iron ore and coal prices, we think margin pressure would make it difficult for the firm to repeat its stellar results.Analyst: Phillip Zhong

Baosteel's Strong 2016 Preliminary Results Beat Our Expectation; Fair Value Estimate Intact

China

Baoshan Iron & Steel Co., Ltd. manufactures and markets a variety of iron and steel products including cold rolled plates and coils, hot rolled plates and coils, seamless steel tubes, high-speed wire rods, and steel billets.  The company also operates in related energy production businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Baoshan Iron & Steel Co A (600019 CH)

CHINA Steel Trader Visit - 3rd Visit

This is our new monthly series to look at steel demand as a proxy for the Chinese economy. We look at steel inventories and how they have changed...

Scott Laprise/ 乐天虎

Minimal Impact on Our Asian Steel Coverage Following U.S.Steel Import Tariffs; FVEs Unchanged

After meeting with steel and aluminum executives at the White House on March 1, President Donald Trump announced that he'll be enacting a 25% steel...

Morningstar, Inc.

Beijing Steel Trader Visit in Jan 2018

Wire rode inventory up and rebar inventory lower than last visit last August 2017. Only one truck we found at the traders showing little...

Scott Laprise/ 乐天虎

Future of Cobalt Vis-A-Vis EVs

As per the Financial Times ("FT") article dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to...

Ishita Jain

Baosteel's Strong 2016 Preliminary Results Beat Our Expectation; Fair Value Estimate Intact

No-moat Baosteel’s 2016 net income is expected to increase by about 770% year over year to CNY 8.8 billion. The results beat our expectations,...

Morningstar, Inc.

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)