[Click eStock] "POSCO International, Accelerating Offshore Wind Growth... Target Price Up"
Hi Investment & Securities raised the target price for POSCO International from 48,000 KRW to 100,000 KRW on the 11th, anticipating accelerated growth in offshore wind power and the company's leap to becoming a global eco-friendly energy specialist.
Lee Sang-heon, a researcher at Hi Investment & Securities, stated, "The target price was calculated by applying a price-to-earnings ratio (PER) of 22.7 times to the 2024 estimated earnings per share (EPS) of 4,411 KRW." He explained, "POSCO International plans to invest a total of 3.8 trillion KRW by 2025 across the entire energy business spectrum, including exploration and production (E&P), liquefied natural gas (LNG) infrastructure, power generation, and eco-friendly energy, thereby completing the entire LNG value chain and establishing a foundation to become a global eco-friendly energy specialist." He added, "From the natural gas value chain perspective, it is expected to expand LNG terminals linked with domestic and overseas power generation projects as well as develop new gas fields. As it advances as an upstream natural gas company, its valuation will be re-rated."
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Growth potential in offshore wind power is also expected to become visible. The researcher said, "POSCO International is currently promoting an offshore wind power project worth 1.6 trillion KRW with a capacity of 300MW located 25 km offshore from Jaeun-myeon, Sinan-gun. Construction is scheduled to begin in the first quarter of 2025 and be completed by the fourth quarter of 2027." He explained, "Along with this Sinan offshore wind project, the company plans to participate in joint development of offshore wind projects in the East Sea region, aiming to expand wind power generation capacity to 2GW by 2030, more than 30 times the current level." Additionally, POSCO International signed a memorandum of understanding (MOU) for comprehensive cooperation in eco-friendly sectors with Equinor and decided to promote the Firefly offshore wind project. The Firefly offshore wind project involves installing 50 wind turbines of 15MW each 70 km offshore from Ulsan Metropolitan City, creating the world's largest floating offshore wind power complex with a total capacity of 750MW.
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