Daye Special Steel Co Limited has released an outstanding half year performance result. It posts profits of CNY 300 million in H1 with the earnings growth of 8%,which is much higher than average sales profit rate of medium sized steel enterprises, and this sound situation has attracted a number of institutions choose to overweight Daye Special Steel.

According to the half year performance result, it shows that the company has achieved sales revenues of CNY 4.538 billion, up by 17.74% YoY. Net profit of shareholders was CNY 318 million with an increase of 8.36% YoY, with earnings per share of CNY 0.71.

Company claims that selling price increase of steel contributes to the growth of sales revenue, while the net profit rising is supported by the reduction of company’s daily cost.

Good performance of the company has attracted many institutional investors, China Universal Asset Management Co Limited, one of the top 10 shareholders of circulation, has made a large investment and risen up to the No 4, coupled with a lot of companies also choosing to overweight in 2nd quarter, including E Fund Management Co Limited, GuoTai AMC and JinTai Securities Investment Funds. Among all the circulation shareholders, the top 10 account for 73.52% of holding shares, an increase of 1.1% over the 1st quarter, showing a trend of increased concentration of ownership.

On August 18th 2011, Dongxing Securities released a research report and pointed out that they will keep Daye Special Steel Co Limited's recommended rating for it mainly focuses on the high-end products with higher profit returns and company's future profit growth is quite optimistic.

Source:steelguru