Yuanta Securities maintained the target price of Poongsan at 39,000 won and its investment opinion of 'Buy'.
Poongsan is expected to see its earnings increase as prices of electric copper (high purity copper) continue to strengthen. Prices of electric copper continued to rise from $5,000 per ton in March 2020 to $9,000 per ton in the first quarter of this year.
Poongsan specializes in nonferrous metal production. It operates the Business Division, which produces and supplies copper and copper alloy products, and the Defense Business Division, which manufactures ammunition such as military bullets and sports bombs.
In addition, Poongsan is expected to maintain strong sales in the defense sector.
Reporter Lee Dong-hoon email@example.com