NH Investment & Securities said on the 12th that completion of a U.S. special alloy plant expected to drive future growth for SeAH Besteel Holdings is drawing near.
At the same time, it maintained an investment opinion of "Buy" and raised the target price 29.4% to 44,000 won from the previous 34,000 won. The previous trading day's closing price of SeAH Besteel Holdings was 34,450 won.
Researcher Lee Jae-gwang at NH Investment & Securities said, "Completion of the special alloy plant 'SeAH Superalloy Technologies' (SST) under construction in Texas is drawing near," adding that high growth and high profitability are expected.
SST, which is under construction in Texas, was understood to have entered the final stage of installing major equipment as of the end of Nov., and is expected to begin trial operations soon.
The researcher said, "SST's main customer is presumed to be SpaceX," adding, "Because the shortage of special alloy supply is expected to continue, profitability should improve once SST is operating normally."
Expectations for benefits from anti-dumping tariffs on the special steel bar business also remain valid. SeAH Besteel and SeAH Changwon Integrated Special Steel filed for an anti-dumping investigation into Chinese special steel bars in Aug.
The researcher said, "As with the previously decided cases for thick plate and hot-rolled products, there is a high possibility that anti-dumping tariffs will be imposed," adding, "Improvement is expected in the performance of special steel bars, which account for a high share of sales."
SeAH Besteel Holdings is a pure holding company of SeAH Besteel, SeAH Changwon Integrated Special Steel, which conduct comprehensive metal materials businesses, and SeAH Aerospace and Defense.