[Click eStock] "Seah Holdings to Begin Full-Fledged Stock Revaluation Next Year... Target Price Raised"

Target Price Raised from 140,000 Won to 150,000 Won
Full-Scale Stock Revaluation Expected to Begin Next Year

On August 27, Shinhan Investment & Securities announced that it expects a full-fledged revaluation of Seah Holdings' stock to begin next year and raised its target price from 140,000 won to 150,000 won. The company maintained its 'Buy' investment rating.

Park Kwangrae, a researcher at Shinhan Investment & Securities, stated, "We have raised the target price to reflect the value adjustment of Seah Besteel Holdings and treasury shares," adding, "The company's long-term growth trajectory is proceeding as previously expected, and a full-scale stock revaluation is anticipated to begin in 2026."

In the second quarter of this year, Seah Holdings recorded sales of 1.7 trillion won, up 10.8% from the previous quarter, and operating profit of 44.6 billion won, up 14.7%. Researcher Park noted, "While the headline figures may not indicate major changes, recovery signals are being confirmed at the subsidiary level. Seah Besteel Holdings saw its second-quarter sales and operating profit increase by 7.2% and 146.5%, respectively, marking two consecutive quarters of improvement since the fourth quarter of last year. This strong performance is particularly meaningful as it was achieved before significant revenue from new businesses or the full effect of special steel anti-dumping measures," he analyzed. Seah M&S achieved over 40% year-on-year growth in both sales and net profit. Park added, "Although operating profit turned to a loss, considering the use of intermediary finance such as usance, quarterly results should be evaluated based on recurring profit and net profit."

Growth in scale and profit is expected to be sufficient to achieve value-up targets such as shareholder returns. Park commented, "The long-term growth of Seah Holdings is being driven by the advancement into special materials and structural demand increases created by regulations and policies. Even during the prolonged stagnation of the steel industry, the company is expected to expand its scale through business diversification, including nuclear casks (CASK), North American special alloys (SST), defense materials, seamless steel pipes for Saudi Arabia (STS), and molybdenum in Vietnam." He further predicted, "With high visibility for growth in both scale and profit, the company is likely to fully achieve its value-up targets, such as a 6% return on equity (ROE) and 25 billion won in shareholder returns by 2027, as stated by management."

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