[Edaily Reporter Park Sun-Yeop ] POSCO INTERNATIONAL(047050)Analysts predict that POSCO International will post earnings exceeding market expectations in the second quarter of this year, driven by growth in its asset-based businesses, such as its Indonesian palm oil operations and Australia’s SENEX. While earnings growth continues, the stock price has undergone a significant correction, leading to assessments that the stock has become more attractively valued.
In a report released on the 16th, Son Hyun-jung, an analyst at Yuanta Securities Korea, projected that POSCO INTERNATIONAL’s second-quarter consolidated revenue would rise 4.6% year-over-year to 8.5378 trillion won, while operating profit would increase 28.8% to 397.4 billion won. The operating profit is about 12% higher than the market consensus of 355 billion won. The firm maintained its “Buy” rating and target price of 112,000 won.

The firm expects the improvement in earnings to be driven by the Indonesian palm oil business and Senex. For the Indonesian palm oil business, the full impact of new farm acquisitions is now being reflected, and production disruptions caused by heavy rains in the first quarter have been resolved. Accordingly, the firm projected that second-quarter revenue would reach 234.8 billion won—a 146.4% year-over-year increase—while operating profit would rise 80% to 72.2 billion won. The operating profit margin is estimated to reach 30.7%.
Senex, an Australian natural gas producer, is also expected to see the full effects of its capacity expansion. This is due to increased production following the establishment of an annual 60 petajoule (PJ) production system, coupled with the impact of rising domestic gas prices in Australia. Senex’s second-quarter revenue is projected to rise 41.9% to 127.4 billion won, while operating profit is expected to surge 210% to 30.7 billion won.
Operating profit for the entire energy business is projected to reach 224.6 billion won, a 56.5% increase from the same period last year, and is expected to drive the company’s overall profit growth. Despite a decline in sales volume, the Myanmar gas field is forecast to generate an operating profit of 144.0 billion won due to stabilized costs and improved profitability. The power generation business is also expected to see an 80% increase in operating profit, driven by higher capacity utilization rates and improvements in the System Marginal Price (SMP).
Analyst Son highlighted that POSCO INTERNATIONAL’s revenue structure is shifting from a simple trading-centric model to asset-based businesses centered on Palm, Senex, and power generation and liquefied natural gas (LNG). He explained that while the steel and trading sectors provide a floor for earnings, asset-based investment subsidiaries are driving additional growth, thereby reducing profit volatility and enhancing sustainability.
The stock price has recently been weak due to a decline in the value of the energy business following adjustments in international oil prices and the impact of lower valuations among Japanese general trading companies. However, Analyst Son assessed that POSCO INTERNATIONAL’s projected price-to-earnings ratio (PER) for 2027 is 8.3x, which is significantly lower than the 12–15x range typical of Japanese general trading companies.
Analyst Son stated, “While the possibility of POSCO Holdings reducing its stake poses a short-term supply-and-demand burden, it is not a factor that undermines the company’s profit-generating capacity or its medium- to long-term growth trajectory.” He added, “Given that earnings are growing while the valuation has fallen, the current PER of 8x represents an excessive discount—both in absolute terms and when compared to Japanese general trading companies.”