[Edaily Reporter Kwon Oh-seok] Hyundai Motor Securities announced on the 12th that it expects earnings to improve for #POSCO Steelion due to price hikes for domestic flat steel products, maintaining its “Buy” rating and raising the target price from 5,660 won to 6,180 won.

Park Hyun-wook, an analyst at Hyundai Motor Securities, said, "We expect second-quarter revenue to reach 291.1 billion won and operating profit to reach 6.4 billion won, a 17% increase year-over-year. For the full year, we forecast revenue of 1.1738 trillion won and operating profit of 32.2 billion won, representing a 32% increase in operating profit," he explained, adding, "Although sluggish demand in downstream industries is expected to persist this year, earnings are expected to improve gradually due to price hikes for core products."
He noted, “Following the release of preliminary investigation results in April, the South Korean government decided in May to impose provisional tariffs (June 12–October 12, provisional rates of 22.34%–33.67%).” "If anti-dumping duties on Chinese products are implemented, domestic color-coated steel sheet manufacturers, including POSCO Steelion, are expected to raise prices and expand their domestic market share, leading to improved performance in the second half of the year." In the color-coated steel sheet market, the share of imported products rose to 21% in April, up 14 percentage points from last year, with 97% of imports originating from China.
Researcher Park added, “Starting this year, China’s supply surplus is shrinking, and steel prices in major global regions, including Korea, are rising, so an improvement in earnings is expected.”