[Click eStock] "Hyundai Steel, Q3 Earnings Also Exceed Expectations"

[Asia Economy Reporter Ji-hwan Park] Eugene Investment & Securities maintained its 'Buy' rating and target price of 72,000 KRW for Hyundai Steel on the 2nd, stating that the company's third-quarter earnings are expected to exceed expectations.

Minjin Bang, a researcher at Eugene Investment & Securities, predicted, "Hyundai Steel's consolidated operating profit for the third quarter is expected to increase by 2201.5% year-on-year to 768.1 billion KRW." He added, "The price of thick plates for shipbuilding in the second half is estimated to have risen by about 350,000 KRW per ton compared to the first half's base price," and "the margin spread is expected to improve by about 60,000 KRW per ton compared to the previous quarter."

In the electric furnace sector, considering the additional price increase of rebar in August, there is an analysis that the shipment unit price is likely to rise more than initially expected. The roll margin is expected to improve by more than 50,000 KRW per ton compared to the previous quarter.

For the fourth quarter, price increases for the automotive sector are anticipated. Researcher Bang analyzed, "The real demand sector where additional price increases are possible in the fourth quarter is the automotive sector," and "the price increase was minimal compared to the rise in raw material costs in the first half, and there is a significant gap with international prices."

He emphasized, "The expected return on equity (ROE) for this year is around 9%," and "tight regional supply and demand, along with strong domestic front-end demand in shipbuilding, automotive, and construction sectors, are expected to continue next year, providing an opportunity to resolve excessive discounts."

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