Hyundai Motor Securities analyzed that SeAH Besteel Holdings' new U.S. special alloy plant, to be completed in June next year, will drive orders from high-growth industries such as aerospace and contribute to earnings growth. It maintained its "Buy" investment rating and raised the target price to 59,000 won from the previous 40,000 won. The previous trading day's closing price of SeAH Besteel Holdings was 51,300 won.
Park Hyun-uk, an analyst at Hyundai Motor Securities, said, "SeAH Besteel Holdings has been investing in a special alloy (nickel alloy) plant in the U.S. with an annual production capacity of 6,000 tons," and noted, "The downstream industry for the new plant, to be completed in June 2026, is the high-growth aerospace sector," seeing it as a key driver of medium- to long-term earnings growth.
The earnings outlook was also raised. Park projected that SeAH Besteel Holdings' operating profit next year will reach 137 billion won, up 21% from this year. He then presented net profit of 117.3 billion won and 168.2 billion won for 2027 and 2028, respectively.
The potential for windfall gains from the U.S.-China hegemony competition was also assessed positively. Park said, "A decision on whether to impose anti-dumping tariffs on Chinese special steel bars is expected in the first half of next year," and analyzed, "If tariffs are imposed, the company's domestic market share is highly likely to rise."
Regarding the target price calculation, Park explained, "We applied a price-to-book ratio (PBR) of 1.07 times by reflecting a sustainable return on equity (ROE) to the estimated 2026 book value per share (BPS) of 55,184 won," and added, "Considering the earnings improvement from the U.S. plant's operation, we derived a target price of 59,000 won."