[Click eStock] "Ssangyong Cement, Continued Profit Improvement with Price Increase and Volume Expansion"

[Asia Economy Reporter Ji-hwan Park] Shinyoung Securities evaluated on the 26th that Ssangyong Cement continues to show improved profitability in its core business due to price increases and volume expansion. The investment opinion 'Buy' and the target price of 9,000 KRW were maintained.

Researcher Sera Park of Shinyoung Securities stated, "Starting with Halla Cement in September last year, price increase efforts were attempted, and recently, as construction volume concentrated in the first quarter, the cement discount rate is being adjusted." According to the Producer Price Index by Statistics Korea, the Portland cement price index rose from 97.2 points in November last year to 103.45 points in February this year, indicating that price increases are actually taking place.

Expectations for new businesses are also high. At the extraordinary general meeting of shareholders on December 30 last year, the amendment of the articles of incorporation to enter the environmental business and change the business purpose was approved. New business sectors were added, covering the entire environmental industry, including waste collection, transportation, incineration, landfill, renewable energy, and environmental consulting. At the general meeting held the day before, approval for the name change to Ssangyong C&E was also completed. C and E stand for Cement and Environment respectively, showing a strong intention to actively enter the environmental business in the future.

Researcher Park explained, "Based on the mine completed in Yeongwol, an eco-friendly landfill project is being promoted, and currently, environmental impact assessments and resident consent procedures are underway," adding, "the expansion is not limited to waste incineration and landfill business but also aims to extend into renewable energy businesses that can be utilized in the waste treatment process in the future."

It also retains its advantages as a traditional high-dividend stock. He said, "The first quarter dividend is expected to be 110 KRW per share, similar to the year-end dividend, highlighting its attractiveness as a dividend stock."

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