[Click eStock] "POSCO International, Profit Growth Phase Starting from Q3"

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating and a target price of 25,000 KRW for POSCO International on the 26th.

First-quarter sales reached 7.1 trillion KRW, a 28% increase compared to the previous year. Growth in the steel sector led to the highest quarterly sales ever recorded. Trading performance rapidly improved due to the recovery of trade conditions and rising prices of key raw materials, and structural growth was observed through the unification of marketing channels within the group.

Operating profit recorded 126.9 billion KRW, down 13% year-on-year. Although steel achieved the highest quarterly profit with maintained margins amid steep growth, the energy infrastructure sector underperformed due to a decreased recovery rate of investment costs in the Myanmar gas field. Jaeseon Yoo, a researcher at Hana Financial Investment, said, “The first-quarter operating results met market expectations,” adding, “If the investment cost recovery rate in the Myanmar gas field normalizes, the impact of price increases will be reflected in the results from the third quarter.”

The food materials sector struggled due to intensified competition and rising freight costs. However, it is expected to enter the peak season from the third quarter and show signs of recovery. The trading and investment corporations are forecasted to continue their profit growth trend for the time being, supported by strong palm oil prices and favorable performance of the subsidiary SPS.

The motor core, a key component for electric vehicles, is expected to increase production volume through additional investments considering the current order negotiations. Researcher Jaeseon Yoo explained, “Investments are planned in China, Mexico, and Poland, so production is expected to increase from the second quarter,” adding, “Considering the rapid recovery of trading conditions, structural external expansion is expected to continue this year as well.”

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