Kiwoom Securities raised its target price by 5.3% from 38,000 won to 40,000 won on the 30th, saying its second-quarter operating profit hit a new high since the second quarter of 2015. The investment opinion remained 'buy'.
"Seah Besteel's second-quarter consolidated operating profit rose 394 percent year-on-year to 93.9 billion won. It not only exceeded the market's expected operating profit of 65.4 billion won, but also exceeded 80.3 billion won, the highest quarterly operating profit (the second quarter of 2015)," Kiwoom Securities said.
In the second quarter, operating profit also rose 726% year-on-year to 60.1 billion won, far exceeding market expectations of 48.3 billion won. "As demand strengthened, sales of special steel reached 530,000 tons, up 9 percent year-on-year," Kiwoom Securities said.
"It is the largest demand level since 540,000 tons in the first quarter of 2018.". In addition, it is said that profitability has improved as restructuring effects have been shown since late last year in large-scale remodeling projects.
"Its second-quarter operating profit rose 75 percent on-year to 35 billion won due to strong sales of its subsidiary Seah Changwon and rising prices of stainless steel products stemming from rising nickel prices, the largest since the first quarter of 2012," Kiwoom Securities explained.
Reporter Lee Dong-hoon email@example.com