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(Photo = provided by POSCO International) |
[Alpha Biz= Reporter Kim Sangjin] Heungkuk Securities has forecasted that POSCO International will begin a revaluation driven by value enhancement. The firm expects POSCO International to enter a profit growth phase in Q4 2024 and anticipates maximized operating profit from next year. The investment rating remains "Buy," with a target price of ₩90,000.
Heungkuk Securities noted that while POSCO International is likely to experience a decline in operating profit until Q3 2024, it will enter a profit growth phase starting in Q4. The company is poised for strong performance recovery next year, thanks to its completion of the LNG value chain, establishment of a comprehensive green energy portfolio (including renewable energy and green hydrogen/ammonia), and investments in mobility, secondary battery materials, and eco-friendly vehicle parts.
For Q3 2024, Heungkuk Securities projects POSCO International’s revenue to be ₩7.7 trillion (down 4.5% YoY) and operating profit to be ₩311.5 billion (down 0.1%). The expected decline in revenue is attributed to a decrease in sales from the steel sector, despite a stable trend in the energy business.
Looking ahead, Heungkuk Securities expects a turnaround in profitability in Q4 2024 due to a low base effect from the previous year. The annual consolidated revenue forecast is ₩31.3 trillion (down 5.6%) with an operating profit of ₩1.2 trillion (up 0.9%). This improvement in performance momentum in Q4 is expected to drive operating profit maximization from next year.
Heungkuk Securities also highlighted POSCO International’s plan to announce value enhancement initiatives in Q4, alongside POSCO Holdings and POSCO Future M. The firm anticipates active participation in value-up programs to enhance corporate value.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
