9M preliminary profit is no surprise
　　Maanshan reported a profit warning after market close on 11 Oct 2016. Its9M16 preliminary profit was estimated at RMB 757m, achieving 77% FY16DBeand 94% Bloomberg consensus. The result might be a positive surprise toBloomberg consensus but in line with DBe.
　　Neutral outlook on steel spread in 4Q, Hold maintainedMaanshan should have recorded a NPAT of 300m in 3Q after an impressiveNPAT of 856m in 2Q. This result well followed market steel spread we tracked,which was relatively stable in 3Q and only c.RMB100/t lower than that in2Q16. Considering that 3Q is the seasonal peak for construction activities, webelieve the steel spread/profitability should remain stable until early 4Q16.
　　Maanshan is trading at 0.7x PBx, which should have factored this positiveprofitability, in our view. Hold maintained.