Daishin Securities noted that it is not easy to make an optimistic forecast regarding sales volumes for POSCO Holdings. They lowered the target stock price from 470,000 won to 410,000 won. However, they proposed an investment opinion of 'buy.' On the 9th, POSCO Holdings' closing price was 261,000 won.
On the 10th, Lee Tae-hwan, a researcher at Daishin Securities, said, "In a situation where it is not easy to make an optimistic forecast for sales volumes due to poor demand, the delay in confirming China’s policy direction has led to difficulties in price negotiations."
He added, "As the exchange rate between the won and the dollar surged due to political turmoil at the end of the year, we have adjusted the outlook for the first half of this year downwards compared to the previous outlook," and noted, "The stock price is estimated to be close to the bottom, marking a point where we can expect China's stimulus package and tariffs."
The target stock price for POSCO Holdings reflects the discount in the value of its lithium business due to the temporary stagnation in electric vehicle demand, alongside the decline in the equity value of listed subsidiaries (Future M, International, etc.).
Daishin Securities projected that POSCO Holdings will have a consolidated revenue of 16.8 trillion won for the fourth quarter, with an operating profit of 473.5 billion won.
This researcher noted, "Steel sales volumes are expected to exceed 8.4 million tons, and a recovery compared to the previous quarter is anticipated," while adding, "We should consider the shrinkage of rolling margin due to price declines and the reflection of one-time expenses at year-end."
He projected, "The performance of overseas steel subsidiaries is estimated to have slightly outperformed compared to the previous quarter," and stated, "The profits in the steel institutional sector likely did not sharply decline compared to the previous quarter."
The non-ferrous metals institutional sector is expected to show a significant underperformance compared to consensus due to poor performance in the energy sector (impacted by SMP declines and major repairs) and decreased sales in the steel and trading corporations among its subsidiaries.
This researcher added, "Future M is also expected to continue experiencing losses due to the reflection of inventory loss evaluations," and noted, "It is realistically difficult for the lithium and nickel battery materials business to make profits at the current price levels."