[Click eStock] "POSCO Inter, Expected to Record All-Time High Performance... Valuation Attractiveness Also Up"

[Asia Economy Reporter Kwon Jaehee] Heungkuk Securities maintained its 'Buy' rating and target price of 42,000 KRW for POSCO International on the 20th.

POSCO International's fourth-quarter sales are expected to reach 11 trillion KRW, and operating profit is projected at 202.2 billion KRW, representing increases of 19.8% and 44.4% respectively compared to the same period last year. This is due to strong performance in the energy and investment corporations despite continued weakness in the trading division from the previous quarter. The Myanmar gas field and investment corporations are expected to have a positive impact. Annual operating profit is anticipated to reach 935.8 billion KRW, marking a record high.

However, the favorable industry momentum seen through this year is likely to experience an overall slowdown next year. This is because recent international oil prices and commodity prices are rapidly stabilizing downward, and the KRW-USD exchange rate is fluctuating around the 1,300 KRW level. Despite the industry downturn caused by the global economic recession next year, POSCO International's operating performance momentum is expected to maintain a solid trend. This is due to the possibility of an upward trend in the selling price of the core profit source, the Myanmar gas field, and the expected steady performance of the investment corporations.

Jongryeol Park, a researcher at Heungkuk Securities, analyzed, "Despite the recent stock price increase, the valuation attractiveness remains high," adding, "It is necessary to use stock price corrections as a good buying opportunity."

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