[Click eStock] "Pungsan, the Biggest Beneficiary of Rising Copper Prices"

[Asia Economy Reporter Jihwan Park] On the 26th, KB Securities rated Poongsan as the top domestic copper processing company and the biggest beneficiary of rising copper prices, issuing a 'Buy' investment opinion and a target price of 25,000 KRW.

Seongwoo Hong, a researcher at KB Securities, said, "Poongsan's EPS CAGR (Compound Annual Growth Rate) for 2020?2023 over the next three years is expected to be 47.1%," adding, "This is because copper prices are expected to rebound from the second quarter."

The LME copper price is forecasted to rise from an average of $5,538 per ton this year to around $6,000 per ton next year. Quarterly averages are expected to increase as well, with $5,135/ton in Q2, $5,524/ton in Q3, and $5,846/ton in Q4 this year.

Researcher Seongwoo Hong evaluated, "The defense sector currently exports military ammunition and sports ammunition to North America and is working to expand into global markets such as Asia, Europe, and the Middle East, which will contribute to future top-line growth and profitability improvement."

He added, "Although competition has intensified in some items such as general-purpose rolled products and brass rods due to the growth of domestic small and medium-sized companies and increased production by overseas companies in China and Taiwan, Poongsan holds a unique technological advantage in areas such as solder and lead frame materials, which have been selected as world-class products," and "In the defense sector, it also leads in competitiveness by succeeding in developing Korean-type indigenous model ammunition."

This content was produced with the assistance of AI translation services.