China's Da Ming H1 profit rises on lower costs

By Reuters News


Overview

  • China steel processor's H1 revenue rose 3.3% yr/yr

  • Net profit for H1 increased 49.5% yr/yr

  • Company diluted stake in Chongqing Daming to 65% via connected transaction


Outlook

  • Group expects adequate liquidity to meet obligations and continue operations for at least 12 months from period-end


Result Drivers

  • SEGMENT MIX - Revenue growth was mainly driven by increased sales in specialized machinery and petrochemical equipment segments

  • CARBON STEEL THROUGHPUT – Carbon-steel processing volume rose 2.4% to 2.50 mln tonnes, indicating higher processing activity

  • LOWER ADMINISTRATIVE COSTS – Administrative expenses fell to RMB154.1 mln from RMB184.6 mln, mainly due to lower entertainment and travelling expenses


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

RMB 21.90 bln


Reuters Recommended Reads

  • Sept 17 - China's Xi calls for 'bigger, stronger' advanced manufacturing sector

  • Sept 15 - China aluminium output hits record high in August with capacity cap in sight

  • Sept 16 - China's Trip.com posts Q2 net loss on anti-monopoly penalty


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.