[Click eStock] "Pungsan Expected to Benefit from Rising Copper Prices"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities on the 7th raised its investment opinion to 'Buy' and increased the target price for Pungsan from 31,500 KRW to 36,000 KRW, a 14.3% increase, citing expected profit growth due to rising copper prices.

Byun Jongman, a researcher at NH Investment & Securities, stated, "Profit growth from rising copper prices next year is the momentum for stock price increase," and added, "The upper limit of LME copper prices is expected to be 8,000 USD per ton."

Next year's consolidated sales are forecasted at 2.8997 trillion KRW, and operating profit at 137.6 billion KRW, representing increases of 12.3% and 15.0%, respectively. Recovery in sales volume of non-ferrous metal products is key, and rising copper prices are expected to drive profit improvement.

Copper prices recorded 7,093 USD per ton on the 16th of last month, showing a strong trend surpassing 7,000 USD per ton for the first time since June 17, 2018. On the 3rd, it rose to 7,669 USD, the highest in 7 years and 8 months. Researcher Byun said, "Although the winter COVID-19 pandemic is ongoing, copper prices are expected to remain strong due to demand from economic recovery," and "The upper limit of copper prices (12 months) is forecasted at 8,000 USD per ton."

In the long term, corporate value increase is expected through land revaluation during the relocation process of the Busan plant. Pungsan is currently relocating its plant as 72% of the Busan plant site is included in the 'Centum 2 District Urban High-tech Industrial Complex' promoted by Busan City. Researcher Byun said, "While the book value of the Busan plant land is 181.1 billion KRW, the market value is estimated to approach 700 billion KRW, raising expectations for corporate value increase through asset revaluation."

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