Baoshan Iron & Steel Co predicted an up to 800 percent annual growth in net profit this year after its net earnings in the first three quarters surged 148.3 percent year on year, helped by cost cutting and a rebound in steel prices.
The Shanghai-listed steelmaker posted a net profit of 5.6 billion yuan (6 million) in the January-September period due to its cost-cutting measures which helped it save 5 billion yuan since the start of this year, it said in its third-quarter earnings report. Meanwhile it predicted profit for the whole of 2016 to soar 600-800 percent to 9 billion yuan.
Shares of Baoshan, whose merger with Wuhan Iron & Steel Group is expected to be completed soon, gained 2.15 percent to close at 5.69 yuan yesterday.
The rebound in steel prices has also boosted the company's profit. Domestic steel prices rose 20.6 percent year on year in the third quarter, Changjiang Securities said.