Recently, while secondary battery theme stocks are showing strong performance, the stock price of POSCO Holdings is soaring. This is due to the fact that expectations for growth after the POSCO Group announced that it will focus on the secondary battery material business are reflected in the stock price.
In particular, after the announcement of the second quarter earnings, the stock price rose even more. This is because the steel industry’s good performance was announced, dispelling concerns that the main business would stagnate while focusing on new businesses. The stock market is raising the target price while confirming the basis for the company’s future growth. However, it is explained that it is necessary to pay attention to the correction that will appear after the recent excessive surge.
Reflecting the expectations of the secondary battery material business… 63% surge in 2 weeks
According to the Korea Exchange on the 25th, on the 24th, POSCO Holdings finished trading at 642,000 won, up 16.5% from the previous day. Posco Holdings, which has been on the rise since the 12th, showed a sharp rise even after the announcement of earnings on the 24th. On the 11th, POSCO Group held the ‘Value Day
‘ for the secondary battery material business and announced that it would increase the target sales of the secondary battery material business from 41 trillion won to 62 trillion won by 2030. To this end, 46% of the group’s investment was concentrated on the secondary battery material business, while raising the target for production of lithium, nickel, and cathode and anode materials. As mid- to long-term growth potential was highlighted, on the 12th, the day after Value Day, the share price of POSCO Holdings rose 5.8% to 417,500 won, and continued to rise every day, rising to 551,000 won on the 21st. On the 24th, the next trading day, it announced earnings that exceeded the consensus, igniting the rise in the stock price.
On the 24th, POSCO Holdings announced that it posted 20.121 trillion won in sales and 1.326 trillion won in operating profit on a consolidated basis in the second quarter of this year. Compared to the same period last year, it decreased by 12.6% and 36.8%, respectively, but increased by 3.8% and 88.2% compared to the previous quarter. This figure exceeded the consensus operating profit of 1,216.1 billion won by 9%.
In particular, the fact that POSCO Holdings, which is transforming into a secondary카지노사이트 battery material company, showed good results in its main business, the steel business (POSCO), seems to have stimulated investor sentiment. POSCO’s second quarter operating profit was KRW 841 billion, up 88.1% from the previous quarter. It is interpreted as the effect of the recovery of steel sales as the factory, which was suspended after last year’s typhoon flood damage, returned to normal operation.
Subsidiaries’ announcement of good earnings also added to the rise in the share price. On the 24th, POSCO International announced that its operating profit for the second quarter was 357.2 billion won, up 28% from the previous quarter. On this day, POSCO International’s stock price rose 30% from the previous day to 66,000 won.
On the same day, POSCO Future M recorded an operating profit of 52.1 billion won on a consolidated basis. Compared to the previous year, it decreased by 5.6%, but compared to the previous quarter, it rose by 156.7%. The stock price also rose 10.5% from the previous day to 542,000 won.
Mid- to long-term growth is certain… However, the possibility of adjustment due to a short-term surge
As Posco Holdings strengthens its secondary battery materials business, stocks are raising its target price for expected growth potential. Considering the company’s future growth and its value as a rechargeable battery maker, we interpret the stock as undervalued.
eBest Investment & Securities from 460,000 to 730,000 Kiwoom Securities from 630,000 to 730,000 Hi Investment & Securities from 460,000 to 740,000 Hana Securities from 520,000 to 740,000 Eugene Investment & Securities from 500,000 to 740,000 Hyundai Motor Securities from 470,000 to 745,000 NH Investment & Securities from 480,000 to 750,000 Samsung Securities from 470,000 to 800,000 BNK Investment & Securities We raised our target price from 450,000 won to 850,000 won, and Korea Investment & Securities from 500,000 won to 900,000 won .
Choi Moon-seon, a researcher at Korea Investment & Securities, said, “Long-term growth is possible until 2030 in the field of secondary battery materials, where growth is certain.” Park Seong -bong, a researcher at Hana Securities , said,
“The recent stock price rise of POSCO Holdings is a process of expanding recognition of new growth engines, such as the secondary battery material business, in addition to the steel business . “
However, it is also necessary to look at the recent short-term stock price surge, which has raised concerns about a correction. In fact, during the two weeks from the 11th to the 24th, when the POSCO Group held Value Day, the stock price of POSCO Holdings soared by 62.7%.
Park Hyun-wook, a researcher at Hyundai Motor Securities, said, “Even with the recent stock price rise, the valuation is not excessive, with a price-to-book ratio (PBR) of 1x and a price-to-earnings ratio (PER) of 18x . ”