April 20, 2024

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[THE INVESTOR] POSCO will continue to thrive in the latter half on demand from China, said Eugene Investment and Securities on June 20, maintaining a “buy” recommendation and 450,000 won (US$405.62) target price. 

Its second-quarter revenue on a consolidated basis will reach 15.5 trillion won with operating profit of 1.37 billion won, and on a standalone basis, 7.49 trillion won and 980.5 billion won, respectively. Operating profit on a consolidated and standalone basis will increase 3.9 percent and 67.6 percent on-year, respectively, estimated analyst Bang Min-jin.

In the second half, its profit will continue to rise on the back of strong demand from China which is investing heavily in real estate and infrastructure. The margin spread is likely to be maintained at the current level, and POSCO’s profit momentum will positively be sustained, she added.

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