April 26, 2024

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[THE INVESTOR] The US Department of Commerce’s decision to lower the anti-dumping duty on SeAH Steel’s oil country tubular goods will lead to a rise in its exports, said Hana Financial Investment on April 13.
The DoC has lowered the tariff to 2.76 percent from the preliminary rate of 3.8 percent that it imposed in October 2016.
The securities firm raised the target price to 134,000 won (US$118.53) from 106,000 won and maintained a “buy” recommendation.
As rival Korean steelmakers have been imposed double-digit tariff rates it will have a competitive edge, and the estimated 20 billion won deposit will be returned, improving earnings this year, said analyst Park Seong-bong.
Its revenue in the first quarter will reach 476.5 billion won with operating profit of 31.4 billion won, and rise in exports to North America will offset the decline in domestic sales, said the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)