[Click eStock] "Posco International, Continued Strong Performance... Target Price Up 12%"

[Asia Economy Reporter Park Jihwan] Samsung Securities maintained a 'Buy' investment rating on POSCO International on the 22nd, citing strong second-quarter earnings driven by the steel market conditions, and raised the target price by 12% based on improved performance.

Jaeseung Baek, a researcher at Samsung Securities, stated, "The company recorded strong second-quarter earnings driven by the steel market conditions," adding, "The consolidated operating profit for the second quarter was 170 billion KRW, exceeding consensus by 17% due to improved steel sales performance amid favorable market conditions."

In particular, the steel sales division experienced both an increase in sales volume and a sharp rise in steel prices based on the favorable market conditions. The somewhat sluggish performance of the Myanmar gas field in the first half is expected to normalize in the second half as phase 2 investments, delayed by COVID-19, begin in earnest. While the sales division, which saw a significant profit increase in the first half, maintains a solid trend, the recovery of oil prices in the second half is expected to act as a momentum for profit growth in the Myanmar gas field.

The steel sales business is expected to continue its strong performance for some time. Researcher Jaeseung Baek emphasized, "With the improvement in profits from the Myanmar gas field added, we raise the operating profit forecast for next year by 11%," and added, "If the structural growth of the future motor core business is observed, the increase in corporate value is expected to become even more prominent."

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