[Click eStock] "POSCO Inter 기대 for New Business... Target Price Up"

Shinhan Investment Corp. significantly raised the target price for POSCO International from 43,000 KRW to 68,000 KRW on the 22nd.

POSCO International's Q4 earnings are estimated to record sales of 8.24 trillion KRW and operating profit of 252.5 billion KRW. Compared to the same period last year, sales decreased by 9.6%, while operating profit increased by 49.6%, but these figures slightly missed market expectations. This was due to weaker-than-expected performance in the steel trading (global), Myanmar gas field, and power generation (energy) sectors.

Annual earnings for next year are expected to reach sales of 37.7 trillion KRW and operating profit of 1.15 trillion KRW. Stabilization of international oil prices is expected to have a negative impact on POSCO International's overall energy sector. Global steel supply and demand is forecasted to see intensified oversupply, with demand growing only in single digits as it did this year, leading to a decline in steel trading performance.

Performance related to eco-friendly secondary battery materials such as graphite, copper foil fuel, recycling, nickel, and lithium is expected to be recorded as meaningful only by 2025. These will act as mid- to long-term growth drivers, with sales projected to expand to twice the current level by around 2030.

Park Kwang-rae, a research fellow at Shinhan Investment Corp., said, "Expectations for interest rate cuts within the market are growing, reigniting interest in the electric vehicle and secondary battery sectors. Although it is difficult to expect explosive profit growth momentum in the short term, the stock price is expected to level up each time visible results emerge from new businesses."

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