“KISCO Holdings Expected to Improve Alongside Subsidiaries’ Results…Target Price Raised” [Click e-Stock]

Hyundai Motor Securities Raises Target Price to 37,500 Won

On August 26, Hyundai Motor Securities raised its target price for KISCO Holdings from 33,000 won to 37,500 won, maintaining its "Buy" rating, citing an expected improvement in its subsidiaries’ quarterly results in the second half of the year.

KISCO Holdings recorded an operating loss of 6.8 billion won for the second quarter, which reduced the deficit compared to the previous quarter’s loss of 17.3 billion won. Its subsidiaries, Korea Steel Shapes and Hwanyeong Steel, posted operating losses of 6.3 billion won and 70 million won, respectively. Domestic rebar demand for the first quarter stood at 1.83 million tons, similar to the same period last year.

Hyundai Motor Securities forecast KISCO Holdings’ operating profit for the second half of the year at 6.7 billion won, reflecting an improvement in results for Korea Steel Shapes and Hwanyeong Steel.

Hyunwook Park, a researcher at Hyundai Motor Securities, stated, "Although domestic rebar demand remains weak, leading indicators suggest demand will increase by a modest 2% compared to last year." He added, "Domestic rebar distribution prices are currently stable at 860,000 won per ton due to the off-season, but as raw material prices stabilize in the second half of the year, the spread is expected to improve."

However, Park also noted, "Nonetheless, given that domestic rebar demand remains soft, the pace of earnings improvement is likely to remain slow."

Hyundai Motor Securities forecast KISCO Holdings’ full-year sales for this year at 922 billion won, with an operating loss of 17 billion won and net profit of 1 billion won. For next year, the outlook is for improved results, with sales of 93.5 billion won, operating profit of 26 billion won, and net profit of 38 billion won.

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