Hyundai Steel, Start full-fledged earnings improvement from 4Q(Yuanta Securities)

[Infostock Daily= Reporter An Hoe Hyun] Yuanta Securities said on the 22nd that Hyundai Steel will be able to improve its operating profit in the fourth quarter as rod-shaped steel is in peak season. The investment opinion remained 'BUY' and the target stock price was 35,000 won.

Hyundai Steel's sales and operating profit on a separate basis for the third quarter were 3.91 trillion won and 12 billion won, respectively, down 12.3% and 64.8% from a year earlier. "The total sales volume in the third quarter is expected to increase by 5% from the previous quarter to 4.89 million tons, and the rod-shaped steel is expected to decrease slightly due to the seasonal low season, but the sales volume of plate materials will increase by 8% as the utilization rate of the automobile forward industry recovers, leading to an increase in overall sales volume," said Lee Hyun-soo, a researcher at Yuanta Securities.

From 4Q, rod-shaped steel is expected to expand its sales volume again in the peak season. "The price of iron ore has risen since the second quarter of this year and raw coal prices have rebounded this month, but the price of steel sheets in automobiles is not rising, so the price increase of plate materials sales in the fourth quarter will be smaller than that of domestic competitors," said Lee, adding, "Despite this, rod-shaped steel will be in the peak season from 4Q, and plate products are expected to increase sales and spread."

Reporter An Hoe Hyun ahh@infostock.co.kr