[Click eStock] "T플랙스, Stainless Steel Plate Price Increase Benefits Continue"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities forecasted on the 2nd that Tiflex is expected to record favorable performance this year as well, influenced by the increase in stainless steel sales prices.

Tiflex procures raw materials from SeAH Changwon Specialty Steel and supplies products to over 1,500 customers in shipbuilding, semiconductors, and other industries. It holds the number one market share in the stainless steel bar sector and operates mainly in bars, plates, and wire rods. The company also runs a rare metal distribution business including titanium and nickel alloys.

In the fourth quarter of last year, sales reached 57 billion KRW, and operating profit was 5.6 billion KRW, growing 73% and 250% respectively compared to the same period the previous year. Annual sales were 189.5 billion KRW, and operating profit was 16.8 billion KRW, increasing 43% and 251% year-on-year respectively. Namguk Lim, a researcher at KB Securities, said, “The best performance since the company’s founding was driven by semiconductor facility investments, LNG shipbuilding, and automobile market recovery,” adding, “Performance is expected to continue improving based on the recovery of upstream industries, stainless steel supply-demand imbalance, and a diverse product portfolio.”

The key investment point going forward is that the rise in nickel prices is leading to an increase in stainless steel sales prices. The supply-demand imbalance is also positive for performance improvement. Nickel prices surged to 23,461 USD per ton on February 25, based on LME, after hitting a low of 7,595 USD per ton in 2016.

Additionally, following semiconductors and automobiles, the recovery of the LNG shipbuilding market this year is expected to drive performance. Researcher Namguk Lim analyzed, “With the recovery of the upstream market, demand for stainless steel valves and fittings is increasing, and growth in the wire rod business division is expected,” adding, “Concerns about a peak slowdown in the industry are premature.”

For stainless steel materials used in electric vehicle battery modules and nuclear power plant valve materials, a market recovery is expected to act as a positive momentum. Researcher Namguk Lim stated, “Expectations for nuclear power plant restarts are growing,” and noted, “The initial investment depreciation burden has decreased due to the designation of the POSCO Processing Cooperation Center for the plate business division, which is also a factor in performance improvement.”

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