Result details: Baosteel reported 1Q14 net income ofRmb1.5bn or Rmb0.09/share, down 5% YoY or 28%QoQ. The Rmb280mn exchange loss due to RMBdepreciation contributed to the decline. Excluding this aswell as asset write back and fair value gain results in 3%YoY growth in net income to Rmb0.10/share. Result details: Baosteel reported 1Q14 net income of Rmb1.5bn or Rmb0.09/share, down 5% YoY or 28% QoQ. The Rmb280mn exchange loss due to RMB depreciation contributed to the decline. Excluding this as well as asset write back and fair value gain results in 3% YoY growth in net income to Rmb0.10/share. Benefitting from SOE reform and Shanghai & HongKong “Through train”: The company announced itsequity incentive plan for top management has receivedapproval from SASAC. We believe this will be anincentive for management to continue to improvecompany’s profitability. The stock is also among a groupof A share stocks that will be able to trade on HKEX onthe new “Through train” program, which will fill the voidof HK listed steel stocks that are well managed andprofitable.