[Click eStock] "Hyundai Steel, Q1 Earnings Meet Expectations... Q3 Recovery Anticipated"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities maintained its buy rating and target price of 25,000 KRW for Hyundai Steel on the 27th, stating that although the company's first-quarter earnings were weak, they met market expectations.

Researcher Lee Jonghyung of Kiwoom Securities said, "The consolidated operating loss in the first quarter was 29.7 billion KRW, in line with Kiwoom Securities' forecast of a 10 billion KRW loss," and added, "The separate operating loss was 21.3 billion KRW, marking a second consecutive quarter of losses, but this is a significant improvement compared to the 142.7 billion KRW loss in the fourth quarter of last year."

Lee forecasted, "Due to the global spread of COVID-19, production disruptions at major automobile manufacturing bases within the group in China, Europe, India, and the United States are inevitable, which will likely cause further severe impacts on automotive steel sheet sales in the second quarter."

He stated, "From the third quarter, when the spread of the COVID-19 virus is expected to subside, group automobile production will normalize, and earnings are expected to gradually recover."

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