[Infostock Daily= Reporter An Hoe Hyun] Hyundai Motor Securities raised its target stock price of POSCO Chemical from 152,000 won to 165,000 won, saying that its performance in the secondary battery material sector is expected to improve from this year. It also reflected expectations that its subsidiary PMC Tech's earnings will turn into an annual surplus this year.
POSCO Chemical recorded sales and operating profit of 449.8 billion won and 20.9 billion won, respectively, in the fourth quarter of last year. Operating profit decreased by 10% year-on-year, but it is up 7% from the previous quarter. It is estimated that pre-tax profit was 15.1 billion won, which is because PMC Tech's earnings improved and its profit and loss on equity method turned into a surplus.
Hyundai Motor Securities expects POSCO Chemical's sales, operating profit and pre-tax profit to rise 26%, 106% and 289% on-year, respectively, with sales of 1.9791 trillion won, operating profit of 124.5 billion won and pre-tax profit of 135.2 billion won.
"We expect that a significant increase in the performance of cathode and anode materials will drive the increase in sales and operating profits," the company explained, adding, "It is also positive that the production capacity of anode materials, a secondary battery material, will increase from 40,000 tons last year to 98,000 tons in 2022 and 210,000 tons in 2025, and the production capacity of cathode materials will increase from 44,000 tons last year to 74,000 tons in 2022 and 170,000 tons in 2025, and the capacity to produce NCMA in 2022 and artificial graphite cathode materials in 2023."
Reporter An Hoe Hyun ahh@infostock.co.kr
