A Korean Company Making Money by Selling Gas... Target Price Raised [Click eStock]

POSCO International Expands LNG Value Chain
New Growth Expected in Uranium Enrichment for Nuclear Power
Target Price Raised from 80,000 Won to 100,000 Won

Eugene Investment & Securities announced on the 16th that it is maintaining its "Buy" investment rating for POSCO International and raising its target price from 80,000 won to 100,000 won.

Seonghyeon Hwang, a researcher at Eugene Investment & Securities, stated, "The continued expansion of the liquefied natural gas (LNG) value chain, as well as new growth options such as uranium, rare earth elements, and the Alaska LNG project, are expected to sustain the upward trend in the stock price."

Researcher Hwang forecasted that POSCO International would achieve sales of 30 trillion won and operating profit of 1.4 trillion won this year. He explained, "The rise in international oil prices due to the war will lead to stronger sales prices for the Myanmar gas field, increased volume and higher prices at the Senex gas field in Australia, and improved results from palm oil operations, all of which will support profit growth." He added that, in the long term, once the fourth phase of the Myanmar gas field development is completed, additional annual profit of over 300 billion won could be generated.

In particular, he assessed that the company has strong potential to be classified as a core part of the value chain related to nuclear power plants, such as uranium. He mentioned that, following the Korea-U.S. summit in August last year, POSCO International signed a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power and Centrus, and that discussions are ongoing regarding joint investment in a new centrifuge plant scheduled to be built in the United States, as well as expanded cooperation in enrichment operations.

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