Meritz Securities on the 7th offered Korea Zinc a new investment opinion of "buy" and target stock price of 650,000 won, saying that the stock price is currently undervalued, except for the secondary battery material business, which is currently being promoted as a new business.
"The expansion of its Australian subsidiary SMC will be completed at the end of the year and achieve a full-fledged increase in sales from next year," Meritz Securities said. "While production of zinc mining is on the rise, the operation rate of rival smelting operators is likely to fall due to global power shortages.".
As a result, researcher Moon predicted that the smelting commission will rebound and record a double-digit return on equity capital (ROE) next year.
Meritz Securities analyzed that the average share price net asset ratio (PBR) was 1.56 times when Korea Zinc's ROE stood at 10-11% between 2013 and 2017, and that the stock price of Korea Zinc, which currently stands at 1.25 times PBR, is undervalued.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
