研报日期：2017-11-03

　　宝钢股份(600019)　　9M17 results beat consensus and DB estimates　　Baosteel announced its 9M17 results after market close on October 27. For thefirst three quarters, the company has recorded revenue at 252.1bn and NPATat RMB 11.7bn. The result beats both DB and Bloomberg consensus, achieving80.7% FY17 DBe and 82.8% Bloomberg 2017 full year estimates. Meanwhile,for 3Q17 alone, Baosteel’s NPAT was RMB5.5bn, 130% up QoQ. We believethe results should trigger street analysts to upgrade their estimates.　　Strong cost reduction; Wugang turnaround and synergy starts to surface　　The company’s sales volume in 3Q17 came at 11.5mt, down 4% QoQ.Baosteel’s products 3Q17 GP/t increased by RMB 317.5/t QoQ. The cost ofgoods sold in 3Q17 decreased by 8.0% QoQ. Baosteel reported a costreduction of RMB17.2bn in 3Q17 alone or RMB55.4bn for 9M17(compare toFY2015 cost level) and might overachieve its full year cost reduction target ofRMB60bn. Meanwhile, the company also reported that its newly acquiredWugang assets have turned around to be profitable with 3Q17 NPAT atRMB855m. Meanwhile, the merger synergy also start to surface and contributeRMB770mn of profits.　　Outlook remains positive, maintain Buy　　Winter pollution measures in northern China will likely keep 4Q17 steel D/Stight and Baosteel's operations being all in southern China are among thebeneficiaries. We also believe the good profitability of the steel industry willlast into 2018 as we explains in our report: 2018 should be just as good;conviction Buy, published on September 5, 2017). Baosteel is currently tradingat 11.8x 2017DBe NPAT and 1.1 PBx. With upcoming synergy to be deliveredand great profitability to be maintained, we think the valuation isundemanding. Buy re-iterated.[Deutsche Bank AG][点击查看PDF原文] 今日最新研究报告

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