POSCO STEELEON’s Earnings to Rise on Chinese Product Restrictions; Target Price Maintained at KRW 6,180

[Financial News] Hyundai Motor Securities maintained its target price of KRW 6,180 for POSCO STEELEON, saying the company’s earnings are expected to improve due to restrictions on imports of Chinese products. The previous trading day’s closing price was KRW 4,635. The brokerage also maintained its “Buy” rating.
On the 4th, Hyunwook Park, a researcher at Hyundai Motor Securities, said, "Restrictions on imports from China are expected to improve earnings by raising domestic prices for color-coated steel sheets and expanding domestic market share."
POSCO STEELEON recorded revenue of KRW 298.2 billion and operating profit of KRW 9.6 billion in the second quarter of this year. Operating profit rose 74% from the same period a year earlier, driven by higher selling prices and increased sales volume. Domestic sales totaled 93,000 tons, up 12% from the previous quarter, while exports fell 2% to 100,000 tons.
Park forecast that the earnings growth would continue in the second half of the year. Operating profit for the second half is expected to reach KRW 18.6 billion, up 17% from the first half. He also expected South Korea’s imposition of provisional anti-dumping duties on Chinese color-coated steel sheets to improve the price competitiveness of domestic companies.
The reduced influence of Chinese products in the domestic color-coated steel market is also a positive factor. The share of imported products rose to 22% in May this year, but fell sharply to 6% in June after provisional anti-dumping duties were imposed.
Park forecast that expanded market share and higher prices among domestic companies, including POSCO STEELEON, would lead to earnings growth in the second half of the year.
Hyundai Motor Securities estimated POSCO STEELEON’s revenue this year at KRW 1.202 trillion and operating profit at KRW 34 billion. Operating profit is expected to increase 41.7% from last year.
Park assessed, "Although the stock price has been undergoing a correction after a sharp rise, it is expected to trend upward in line with improving earnings going forward." The target price of KRW 6,180 was calculated by applying a sustainable return on equity (ROE) to the projected 2026 book value per share.

[email protected] Kang Jung-mo Reporter