▶주메뉴 바로가기

▶본문 바로가기

THE INVESTOR
June 21, 2019
Big Reunion

Stocks & Bonds

[EQUITIES] ‘Hyundai Steel fares well despite slow industry’

  • PUBLISHED :December 27, 2018 - 16:32
  • UPDATED :December 27, 2018 - 16:32
  • 폰트작게
  • 폰트크게
  • facebook
  • twitter
  • sms
  • print

[THE INVESTOR] Hyundai Steel’s long products remain solid despite the slow domestic construction market, said Eugene Investment and Securities on Dec. 27 maintaining a “buy” recommendation and 55,000 won (US$49.01) target price. 




Its revenue on a standalone basis in the fourth quarter will surge 79 percent on-year to 4.72 trillion won and operating profit by 10.9 percent to 331.7 billion won. Although electric furnace prices will fail to rise, steel roll margins will remain on a stable upturn. The blast furnace division, however, will suffer from a decline in exports and lower prices. Next year is not very optimistic as sluggish domestic construction market and inflow of lower-priced Chinese products will undermine its electric furnace business, while commodity prices will burden its blast furnaces, said analyst Bang Min-jin.

Uncertainties loom, but it will concentrate on defending its margins through adjusting operation rates. Although sales of cold-rolled sheets and stainless steel carbon are improving slower than expected, profitability decline will be limited, said the analyst. 

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

  • facebook
  • twitter
  • sms
  • print

EDITOR'S PICKS