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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘SeAh Steel unperturbed by low season’

  • PUBLISHED :September 19, 2017 - 12:58
  • UPDATED :September 19, 2017 - 12:58
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[THE INVESTOR] SeAh Steel will remain strong in the low season third quarter, said IBK Investment and Securities on Sept. 19, suggesting a “buy” recommendation and 148,000 won (US$131.09) target price. 




Its revenue in the period will hike 39 percent on-year to 599 billion won and operating profit by 175 percent to 37 billion won, propelled by the raw material price rise and strong sales, said analyst Han Yu-geon. 

Its recent stock price has been dragged down by the loss from shrinking spread of steel plates, US investigations into imported steel and the possibility of ditching Korea-US Free Trade Agreement, explained the analyst. 

As the operation of rigs for shale oil and gas in the US jumps 15 percent, however, steel pipe export to the region will rise and the total sales volume of steel pipes will reach 400,000 tons, estimated Han.

Meanwhile, its US branch SSUSA has begun operations in June and will post improved earnings from next year. The initial fixed costs will be offset by the rising sales in the US and increasing operation ratio, according to the analyst. The steel company will also gain from relatively lower anti-dumping tariffs than its rivals, he added. 

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

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