NH Investment & Securities said about POSCO Chemical on the 22nd, "There will be no short-term performance momentum due to sluggish sales of positive and negative systems due to disrupted production of finished cars," maintaining its investment opinion "buy" and its target stock price at 270,000 won.
NH Investment & Securities said, "POSCO Chemical's third-quarter sales rose 29 percent on-year to 5,049 billion won, but its operating profit rose 62 percent to 31.4 billion won, below the consensus of 16 percent, reflecting about 5 billion won in one-off costs stemming from rising labor costs, and if it is removed, it has achieved a level of performance that meets the consensus.".
"Our main business achieved positive performance centered on refractories and raw lime due to increased production of POSCO reinforcement, but sales of cathode and Anode materials decreased compared to the previous quarter due to disruptions in the production of finished cars," NH Investment & Securities explained.
"Sluggish sales due to production disruptions of finished cars are expected to continue in the fourth quarter," said NH Investment & Securities "We expect POSCO Chemical's fourth-quarter operating profit to rise 47% to KRW 30.7 billion, below the consensus of KRW 38.8 billion by 20%, but Anode materials will be sluggish than anode materials as it did in the third quarter.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com