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Photo = KISCO |
[Alpha Biz= Reporter Kim Minyoung] SK Securities predicted that KISCO will improve slightly in the second quarter.
Photo = KISCO
SK Securities predicted on the 24th that although KISCO performed poorly in the first quarter of this year, it will improve slightly in the second quarter. However, it was assessed that the stock price upside capacity is limited. The target price rose to 12,800 won from the previous 8,500 won, but the investment opinion fell from 'buy' to 'neutral'.
KISCO's first-quarter sales fell 36.5 percent on-year to 148 billion won and operating profit fell 93.8 percent to 1 billion won. SK Securities said, "Rebar sales are estimated to have fallen 30.5% to 155,000 tons," adding, "The decline was greater than other steel makers."
"In the second quarter, earnings are expected to grow slightly due to the peak season, but the width will not be large because we are strongly applying the intensity of production cuts compared to other companies," said SK Securities. "Sales and operating profit will decrease by 34.9% and 82.2%, respectively."
"Although the business situation is sluggish, the stock price has risen 67.9% since the announcement of the acquisition of 60 billion won in March," SK Securities said. "It is positive that new acquisition is scheduled, but the room for increase is limited considering multiple trends in past treasury stock purchases."
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
