[Infostock Daily= Reporter An Hoe Hyun] Yuanta Securities said on the 22nd that POSCO(005490) is expected to improve its performance in the third quarter due to increased sales in the steel sector(headquarters and overseas). The investment opinion remained 'BUY' and the target share price remained at 270,000 won, respectively.
Yuanta Securities predicted that POSCO's operating profit in the third quarter of this year will be 176.5 billion won separately and 449.7 billion won in connection, down 73% and 57%, respectively, from a year earlier. On a separate basis, the company raised its forecast for sales of its products in the third quarter from 8.48 million tons to 8.95 million tons. This is because major domestic and foreign front industries are normalizing their operations faster than expected and their market share is estimated to be expanding in the domestic market.
"The export prices of hot-rolled and cold-rolled steel plates both hit a low point in June, and the export prices of hot-rolled and cold-rolled steel plates have risen $75 and $46 per ton, respectively, in September(1~20) compared to June," the company explained, adding, "The product mix is also expected to expand high-value-added steel species until the fourth quarter following the third quarter compared to the second quarter, and profitability improvement is expected to continue until the fourth quarter."
The quarterly earnings improvement is also expected to have a positive impact on dividends in the third and fourth quarters(end of the year), so the annual dividend per share(DPS) is estimated at 8,000 won.
Reporter An Hoe Hyun ahh@infostock.co.kr
