April 18, 2024

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The resources sector’s operating profit in the first quarter more than doubled on the back of commercial production of its Indonesian mine, said analyst Gwak Ji-hun. The oil division is also recovering fast, pointed out the analyst. 

The logistics division too fared well and is slowly expanding, noted Gwak.
NH Investment and Securities agreed that resources and infrastructure sectors led to the earnings surprise, upgrading its recommendation to a “buy” from a “neutral” and raising the target price to 40,000 won from 34,000 won.

Although the logistics part has not completely recovered since the market deteriorated in the second quarter last year, it has continued to grow, said analyst Kim Dong-yang. 

Profits from the resources business will surge this year as the coal price will rise and loss form non-coal resources will shrink, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)