[Click eStock] "SeAH Besteel, Historically Undervalued Appeal"

[Asia Economy Reporter Park Jihwan] Hyundai Motor Securities forecasted on the 21st that SeAH Besteel's quarterly earnings will stabilize in the black and show noticeable improvement this year as demand in the upstream industry recovers. The price-to-book ratio is evaluated to remain at a historically low level of 0.2 times. The investment opinion is maintained as 'Buy,' and the target price was raised by 22.9% from the previous 11,800 KRW to 14,500 KRW.

Hyunwook Park, a researcher at Hyundai Motor Securities, stated, "In the fourth quarter of last year, on a separate basis, sales amounted to 373.9 billion KRW, and operating profit was 3.2 billion KRW," adding, "Operating profit is expected to turn positive compared to the same period last year and the previous quarter."

The reason for the improved performance is estimated to be that sales volume has approached normal levels as demand in the upstream industry recovers. The average monthly shipment of special steel in Korea for October and November increased by 48% compared to the third quarter's monthly average. However, significant improvement in the product mix is not expected yet.

Along with the improving performance, undervaluation attractiveness is also highlighted. Researcher Park predicted, "Considering the 0.2 times price-to-book ratio, the stock price is expected to trend upward in the medium to long term."

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