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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Korea Zinc to strengthen shareholder returns’

  • PUBLISHED :August 28, 2018 - 10:25
  • UPDATED :August 28, 2018 - 10:25
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[THE INVESTOR] Korea Zinc is expected to return more to its shareholders, said NH Investment and Securities on Aug. 28, maintaining a “buy” recommendation and 500,000 won (US$450.53) target price.




As of end-June, the company has 2.22 trillion won in cash reserves and short-term investment assets. It has ample means to invest for further growth and will continue to reward its shareholders by generating stable profits. It has also completed streamlining leaching process, expanding electrolysis facility, and installing energy-saving systems last year. Through this, approximately 100 billion won manufacturing costs per year will be saved, said analyst Byeon Jong-man.

Its operating profit in the third quarter will rise 7.2 percent on-year to 200.8 billion won. The London Metal Exchange’s sudden zinc price adjustment could temporarily boost its profits in the period as well. Concerns over an economic slowdown due to China-US trade conflict and strong US dollar dragged down zinc and lead prices. But when the greenback weakens, the metal prices are expected to rebound, added the analyst.

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

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