[Click eStock] "Secondary Battery Material Performance Improvement" POSCO Chemical, Target Price Up

[Asia Economy Reporter Ji Yeon-jin] Hyundai Motor Securities raised the target price for POSCO Chemical from 152,000 KRW to 165,000 KRW, anticipating an improvement in the performance of the secondary battery materials sector starting this year. The expectation that its subsidiary PMC Tech will turn profitable on an annual basis this year was also reflected.

POSCO Chemical recorded sales and operating profit of 449.8 billion KRW and 20.9 billion KRW respectively in the fourth quarter of last year. Although operating profit decreased by 10% compared to the previous year, it increased by 7% compared to the previous quarter. Pretax profit was 15.1 billion KRW, which is estimated to be due to the improvement in PMC Tech’s performance, turning equity-method income into a profit.

Hyundai Motor Securities expects POSCO Chemical’s sales to reach 1.9791 trillion KRW, operating profit 124.5 billion KRW, and pretax profit 135.2 billion KRW this year, with sales, operating profit,

and pretax profit increasing by 26%, 106%, and 289% respectively compared to the previous year.

Hyunwook Park, analyst at Hyundai Motor Securities, said, “We expect the increase in sales and operating profit to be driven by significant growth in cathode and anode materials performance.” He added, “The production capacity of cathode materials, a secondary battery material, will increase from 40,000 tons last year to 98,000 tons in 2022 and 210,000 tons in 2025, while anode materials will increase from 44,000 tons last year to 74,000 tons in 2022 and 170,000 tons in 2025. Additionally, it is positive that NCMA production capacity will be established in 2022 and artificial graphite anode production capacity in 2023.”