Hyundai Steel Dangjin Steel Mill (photo = Hyundai Steel)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] Shinhan Investment & Securities Co. said on the 2nd that Hyundai Steel's operating profit will fall below market expectations despite a surplus in the first quarter of this year, adding that its investment opinion remained "Buy" and lowered its target price from 40,000 won to 39,000 won.

"We expect consolidated earnings in the first quarter with sales of KRW 6.35 trillion and operating profit of KRW 92.5 billion," said Shinhan Investment & Securities Co. "Unlike the fourth quarter of last year when operating profit was in the red, the figure is far below market expectations of KRW 136.1 billion." "We expect sales to be 5.25 trillion won and operating profit to be 43.8 billion won, which also falls short of market expectations (5.25 trillion won, 97.7 billion won)," he explained.

"The profit is expected to increase by about 20% this year from last year," Shinhan Investment & Securities said. "A sharp rise in stock prices seems difficult considering that it is an increase in profits from falling costs, not an increase in selling prices, and additional variables besides profit growth momentum will need to be activated to level up stock prices."

 

 

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