[THE INVESTOR] Taekwang is likely to benefit as global companies such as Saudi Aramco invest more in natural gas, said Hana Financial Investment on Nov. 29 maintaining a “buy” recommendation and 20,000 won (US$17.80) target price.
The world’s largest oil company has taken control of SABIC, and has announced plans to invest US$500 billion in the next decade. Plans for exploration of natural gas and liquefied natural gas are being rolled out in North America and the Middle East, which will boost demand for stainless steel and alloy fitting products, said analyst Park Mu-hyeon.
Industrial fitting products made of carbon black material for oil plants make up for more than half its revenue. But steel fitting orders from North American LNG plants are increasing. Armaco’s major investment schemes will significantly raise share of steel and alloy production and profitability will improve in tandem, he added.
By Hwang You-mee (email@example.com)