April 20, 2024

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[THE INVESTOR] POSCO ChemTech has more than satisfied second-quarter earnings estimates, said NH Investment and Securities on July 21, maintaining a “buy” recommendation and raising the target price to 22,000 won (US$19.65) from 18,500 won.

Sales of quick lime suffered as POSCO’s furnace had to undergo maintenance and profit from coal tar declined, but the rise in refractories sales and cost management offset the losses, said analyst Byeon Jong-man. 

Its operating profit will continue to improve, reaching 29 billion won in third quarter and 30.5 billion won in the fourth quarter, forecast the analyst.
Following the restructuring of Chinese steel industry, its subsidiary PMC Tech is garnering attention, and is expected to post 11.8 billion won net profit this year, as against last year’s 36.6 billion won net loss, said Byeon.

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