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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] On July 30, NH Investment & Securities assessed Hyundai Steel as having a delayed steel market recovery and weak Q2 performance. They maintained a "Buy" rating but lowered the target price to 40,000 KRW.
NH Investment & Securities noted, "Q2 operating profit was 98 billion KRW, indicating continued low profitability and falling short of consensus estimates," attributing the weak performance to decreased sales of electric furnace products due to ongoing construction sector slowdown.
Despite the sluggish market, they highlighted Hyundai Steel's undervaluation relative to its asset value and emphasized the need to focus on future performance improvement factors.
They pointed out that domestic building starts have been increasing, up by 6.2% by June, and anticipate improved demand for rebar and other electric furnace products in the second half of the year. Additionally, they analyzed that effective enforcement of China's crackdown on illegal low-priced exports could contribute to overall steel supply improvements.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
