[Click eStock] "Pungsan, Copper Prices Trending Upward... Earnings Growth Expected to Continue"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities forecasted on the 27th that Pungsan's earnings growth will continue due to the rising trend in copper prices. Accordingly, they presented a 'Buy' investment opinion and a target stock price of 36,000 KRW.

Byun Jongman, a researcher at NH Investment & Securities, stated, "Operating profit for the fourth quarter of last year is expected to meet market expectations as sales of copper products increased, copper prices rose, and ammunition sales also grew." Although defense sales are expected to decline slightly this year, the rise in copper prices is anticipated to drive the stock price upward. The average copper price from December last year to January this year was $7,855 per ton, which is 14.9% higher than the average sales price of $6,835 per ton applied in the fourth quarter.

Improvement in profits from the copper products division is also expected to continue. On the other hand, the defense division's sales are forecasted to decrease by 3.1% year-on-year this year due to the end of Middle East contract sales in the first quarter and a slowdown in ammunition demand in the United States.

Consolidated sales for the fourth quarter of last year are expected to be 815.5 billion KRW, and operating profit 52.9 billion KRW, increasing by 15.4% and 216.3% respectively compared to the previous year. Researcher Byun said, "The copper price applied to copper product sales rose 10.0% compared to the previous quarter," and "defense division sales are expected to increase by 7.5% to 272.4 billion KRW, supported by seasonal domestic sales in the fourth quarter."

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