[Click e-Stock] "Hyundai Steel Expected to Improve Business Performance from Q2"

On April 9, Hana Securities maintained its target price for Hyundai Steel at 50,000 won and its "Buy" investment rating, reflecting expectations for improved business performance.

In a report released on the same day, Hana Securities analysts Park Sungbong and Kim Seungkyu stated, "For the first quarter of this year, Hyundai Steel's consolidated sales and operating profit are expected to reach 5.8 trillion won and 45.5 billion won, respectively. Although the operating profit is likely to fall short of market consensus, as the prices of key products such as hot-rolled steel and rebar have shifted to an upward trend, business performance improvement driven by spread expansion is anticipated starting from the second quarter."

Due to domestic steelmakers’ production cuts and shipment restrictions, as well as an export-oriented sales strategy, rebar inventories have dropped sharply, resulting in a steady increase in rebar distribution prices since the beginning of the year. As major steelmakers have announced additional price hikes, further increases in rebar prices are anticipated, and section steel is expected to enter a phase of spread expansion in the second quarter.

Analyst Park added, "Given Hyundai Steel's additional price hike plans and the simultaneous price increase trend among major Asian steelmakers, it is expected that the selling price increases will exceed the rise in raw material costs. Hyundai Steel's operating profit for the second quarter is projected to reach 161.8 billion won."

This content was produced with the assistance of AI translation services.