[Edaily Reporter Kim Hyung-il ] Shinhan Investment Securities maintained its “Buy” rating and target price of 44,000 won for HYUNDAI STEEL(004020). Given that the 12-month forward price-to-book ratio (PBR) stands at approximately 0.17x—a historic low—the firm forecasts that the stock price will undergo a stepwise revaluation in the second half of the year, driven by improved rebar profitability, the reflection of price hikes for automotive steel sheets, and shareholder return policies.

On the 4th, Park Gwang-rae, an analyst at Shinhan Investment Securities, stated, “Consolidated operating profit for the second quarter was 57.7 billion won, a 267.5% increase from the previous quarter, but fell short of market expectations (75.9 billion won).” He added, “While sales volume and pricing trends were in line with expectations, it is estimated that rising input costs toward the end of the quarter eroded the improvement in profit margins.”

He continued, “The second quarter marked the peak for input costs,” explaining, “While coking coal and steel scrap prices are stabilizing in tandem, price increases for automotive steel sheets will take effect starting in August, and efforts to raise prices for shipbuilding plate are also underway.” He further predicted, “Considering the major maintenance scheduled for the fourth quarter, the supply-demand balance for steel plates is expected to remain tight,” adding, “Profit improvement in the second half will stem from the spread per metric ton rather than volume.”

Shinhan Investment & Securities projected HYUNDAI STEEL’s consolidated operating profit at 121.2 billion won for the third quarter and 188.5 billion won for the fourth quarter. Analyst Park stated, “In the second half, the stock price will be driven more by a series of events—such as improved rebar profitability in the third quarter, the reflection of the August price hike for automotive steel sheets in earnings, and the shareholder return policies announced for the third and fourth quarters—rather than by profit levels,” adding, “We expect a stepwise revaluation rather than a sharp rebound in the stock price.”

However, he cited net debt of approximately 7 trillion won and annual capital expenditures (Capex) exceeding 2 trillion won from 2026 to 2028 as risk factors. Analyst Park added, “The key question is whether the shareholder return policy will be implemented at a level compatible with the company’s financial burden.”