April 26, 2024

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[THE INVESTOR] POSCO will continue to improve in tandem with the rising steel prices, said Mirae Asset Daewoo on Oct. 27, raising the target price to 450,000 won (US$398.62) from 400,000 won and maintaining a “buy” recommendation.

The average price of Chinese hot-rolled steel in the third quarter rose 25 percent over the second quarter and the current prices have risen further. POSCO’s sale price in the fourth quarter will hike accordingly, pushing the operating profit on a standalone basis by 27 percent, said analyst Lee Jae-gwang.

The excessive facilities will decline gradually as Chinese steel industry continues to streamline the oversupply, according to the analyst.

Meanwhile POSCO’s restructuring over the last four years will show results due to improved earnings of subsidiaries, he added.

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