[Click eStock] "Posco International, Should Buy Proactively"

Meritz Securities initiated coverage on POSCO International on the 21st, issuing a 'Buy' rating and setting a target price of 73,000 KRW.

Moon Kyung-won, a researcher at Meritz Securities, stated in the report, "We applied a 20% premium compared to peers," adding, "Given the high stock price volatility expected depending on exploration results, a strategy of proactively buying at a reasonable valuation level is necessary. The time is now."

Researcher Moon emphasized the need to reassess POSCO International. He analyzed, "Although the company has clearly transformed into an energy firm through milestones such as the successful Myanmar gas field exploration in 2004 and the merger with POSCO Energy in 2023, its value has not been properly recognized. Energy is a core business in terms of profits and investment plans, and unlike global E&P operators who have been passive over the past four years, POSCO International has invested aggressively."

The performance of investments in Myanmar and SENEX, the gas upstream-focused core businesses, is expected to intensify starting this year and from 2026 onward.

Accordingly, operating profit from the exploration and production (E&P) business is projected to grow at an average rate of 17.5% from 2024 to 2026.

Researcher Moon also highlighted the importance of new exploration momentum. He said, "Exploration results from gas fields in Malaysia, Australia, and the East Sea between 2025 and 2027 potentially represent a huge upside. In the past, the price-to-earnings ratio (PER) multiple more than doubled during the development of the deepwater Myanmar gas field," adding, "Notably, the company is the only domestic operator developing deepwater gas fields, and participation in domestic projects is anticipated."

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