[Edaily Reporter Hyera Lee ] On the 23rd, KIWOOM Securities assessed that POSCO INTERNATIONAL(047050)offers high visibility for dividend growth due to its excellent earnings growth and stability, and that it is currently in a phase with high appeal for new investors.

Jo Jae-won, an analyst at KIWOOM Securities, stated, “While earnings estimates continue to be revised upward, the stock price has fallen by more than 40% in a short period since May,” adding, “The current stock price corresponds to an expected dividend yield of 5.3% for 2026, making this a highly attractive entry point for new investors.”
KIWOOM Securities projected that POSCO INTERNATIONAL’s second-quarter operating profit would reach 388.8 billion won, a 24% increase year-over-year, exceeding market estimates (360.1 billion won). Analyst Cho elaborated, “We have raised our forecast by approximately 13% from the previous estimate (344.0 billion won) by factoring in higher-than-expected earnings from the Myanmar E&P and Indonesian palm oil businesses.”
In the materials sector, the palm oil business is expected to drive earnings improvement. He said, “Sales volumes have returned to normal after recovering from the impact of first-quarter flooding, and the full effect of the palm oil plantation acquisition will be reflected starting in the second quarter,” adding, “CPO (crude palm oil) prices are also holding at levels 10–20% higher than at the beginning of the year, so further profit improvement is expected.” Accordingly, operating profit for the Indonesian palm oil business in the second quarter is expected to reach 60.1 billion won, a 50% increase year-over-year.
The energy sector is also projected to continue its growth momentum, led by the power generation business with Australia’s SENEX. Analyst Cho noted, “With performance growing across all business units, spearheaded by the power generation business with Australia’s SENEX, operating profit in the energy sector is expected to reach 218.9 billion won—a 47% increase year-over-year—and the operating profit margin is projected to rise to 19.1%, driving an improvement in the company’s overall profitability.”
KIWOOM Securities projected POSCO INTERNATIONAL’s annual operating profit at 1.4253 trillion won, a 22% increase from the previous year. Analyst Cho stated, “This year marks a high-growth phase where the results of past investments are translating into earnings,” adding, “While the growth rate may slow somewhat next year, we are focusing on the potential for upward revisions to earnings estimates driven by the expansion of the palm oil value chain, investments in North American gas fields, full-scale operations at Sennex, and the performance of the mobility business.”
He also highlighted dividends as a key point. “The company plans to allocate more than 50% of consolidated net income to shareholder returns through next year,” he explained, adding, “The expected dividend per share for this year is 2,800 won, a 51% increase from the previous year.”
He added, “While the average stock price growth rate for five Japanese general trading companies over the past year was 62%, POSCO INTERNATIONAL’s was only 1%,” noting, “We expect this gap to narrow somewhat in the second half of the year, and the stock price rebound could accelerate once POSCO Holdings Inc. completes the divestment of its stakes in subsidiaries.”