[Click eStock] "Ssangyong Cement, Earnings Improvement Expected This Year... Target Price Up 29%"

[Asia Economy Reporter Park Jihwan] Yuanta Securities on the 4th raised the investment opinion to 'Buy' and the target price for Ssangyong Cement by 29%, from the previous 6,500 KRW to 8,400 KRW, citing expected performance improvement this year.

Researcher Kim Giryong of Yuanta Securities evaluated, "Ssangyong Cement's consolidated results for Q4 last year showed sales of 426.1 billion KRW and operating profit of 74.8 billion KRW, representing increases of 1.9% and 7.5% year-on-year, respectively, in line with market expectations." He explained that the total shipment volume in Q4 decreased by 2.3% year-on-year due to the reflection of delayed shipments caused by the rainy season and typhoons in Q3, narrowing the decline compared to Q1-Q3.

He analyzed that changes for growth are ongoing. Researcher Kim forecasted, "With the operation of four sequentially completed recycling resource processing facilities last year fully reflected this year, there will be increased revenue from incineration fees, cost improvements from reduced use of bituminous coal, and reductions in carbon emission rights, which are expected to continue improving performance."

In particular, the price increase effect, which the industry has been attempting since the end of last year, is expected to make the performance improvement more distinct. Through additional reductions in bituminous coal usage via recycling resource processing facilities, securing power through waste heat power generation, and investments such as landfill, it is anticipated that the company will continue its growth strategy through various environmental businesses beyond its traditional cement core business. Specifically, this year's performance guidance estimates sales of 1.56 trillion KRW and operating profit of 270 billion KRW, representing increases of 6.1% and 7.9% year-on-year, respectively.

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