Shinhan Investment & Securities said undervaluation factors for SeAH Holdings, a company listed on the Korea Exchange's main board, are being resolved step by step from a value-up perspective. Shinhan Investment & Securities on the 6th maintained a Buy rating on SeAH Holdings and raised its target price to 200,000 won from 170,000 won.
Park Gwang-rae, an analyst at Shinhan Investment & Securities, said the company removed the risk of duplicate listings by delisting SeAH Special Steel in February through a comprehensive stock exchange, and signaled a commitment to shareholder returns by presenting a concrete figure of 50 billion won for share buybacks and cancellations over three years from 2026 to 2028, adding that SeAH Holdings shares have room to rise. The view is that chronic undervaluation will ease as the pace of executing the shareholder return plan becomes clear.
Park said returns on investments in new businesses will begin in earnest next year, with profit growth of more than 50% expected in 2027, adding that the basis for business growth can be found in the U.S. plant SeAH Superalloy Technologies (SST) and in aerospace and defense materials.
According to Shinhan Investment & Securities, the U.S. SST, which produces nickel superalloy materials for space and aviation, has a production capacity of 6,000 tons. The average selling price of its products is $20–$50 per kilogram, and assuming an 80% utilization rate, it is assessed to have sales potential of $960,000–$2,400,000 (140 billion–350 billion won). The plant is currently in the equipment installation phase after completion, with plans to start producing powder and master alloy in the second to third quarter of this year.
Park said that for aerospace and defense materials, which are proceeding with investment in the second Changnyeong plant, a sharp increase in profit is expected through the addition of new customers.
Meanwhile, this year's operating profit for SeAH Holdings is forecast at 222.2 billion won, up 24% from a year earlier.