Hyundai Steel, Valuation Falls to COVID-19 Pandemic Level... Target Price 55,000 Won

[Asia Economy Reporter Park So-yeon] BNK Investment & Securities has set a target price of 55,000 KRW and a buy rating for Hyundai Steel.

According to FN Guide on the 1st, BNK Investment & Securities recently stated in a report on Hyundai Steel that "the valuation has fallen to the level seen during the COVID-19 pandemic."

BNK Investment & Securities analyzed, "The domestic and international steel market has shown a continuous downturn, causing the prices of long products and hot-rolled steel in the third quarter to decline more than expected."

Currently, the steel market faces a demand slowdown rather than supply issues, and the prolonged slump in China's construction sector is putting pressure on the East Asian steel market.

Domestic demand industries have also continued to contract year-on-year, resulting in weak demand across all product categories except for thick plates.

BNK Investment & Securities expects performance to recover in the fourth quarter due to a decrease in blast furnace input costs, the end of the decline in long product prices, and the seasonal effect. They also foresee the possibility of further improvement in sales volume and prices of hot-rolled steel and thick plates if competitors' recovery from damages is delayed more than expected.

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