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Photo = POSCO Group |
[Alpha Biz= Paul Lee] Samsung Securities stated that "the recovery of steel demand requires more patience," forecasting that POSCO Holdings' Q1 earnings will slightly underperform market expectations. Despite this, the firm maintained its "Buy" rating and a target price of 400,000 KRW.
Samsung Securities estimated that POSCO Holdings' Q1 consolidated revenue would decrease by 1% quarter-over-quarter to 17.6 trillion KRW, with an operating profit of 545.4 billion KRW—13% below the market consensus. It explained that while some one-time expenses from the previous quarter have provided a base effect, a full recovery in both the steel and battery materials sectors has yet to materialize.
The firm also noted, "The economic targets set during China's National People's Congress in early March aligned with market expectations. However, given the U.S. government's recent decision to impose direct tariffs on steel products and new import duties on automobiles—an important source of steel demand—starting April 2, the wait for steel demand recovery may be prolonged."
Nevertheless, Samsung Securities pointed out a mitigating factor: "Since the U.S. decided to impose a uniform 25% tariff on imported steel, domestic steel prices in the U.S. have surged by over 25% in the past two months. This eases concerns that the price competitiveness of Korean steelmakers' exports to the U.S. will be immediately undermined."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
