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[Asia Economy Reporter Hyungsoo Park] POSCO Coated & Color Steel's stock price continues to rise following its 'surprise earnings' in the first quarter.

As of 9:19 a.m. on the 23rd, POSCO Coated & Color Steel is trading at 42,500 KRW, up 10.39% from the previous day.

POSCO Coated & Color Steel announced the day before that its consolidated operating profit for the first quarter reached 14.4 billion KRW, a 323.5% increase compared to the same period last year. During the same period, sales rose 10.7% year-on-year to 253.1 billion KRW. Net profit also surged 628.7% to 10.7 billion KRW.

Due to strong raw material prices, POSCO Coated & Color Steel raised its selling prices, which positively impacted profitability. From shipments on the 1st of this month, the company increased the selling price of cold-rolled coated steel by 50,000 KRW per ton. Earlier, in February, it raised prices by 100,000 KRW per ton for all cold-rolled coated products.

As an affiliate of the POSCO Group, POSCO Coated & Color Steel is a surface-treated steel specialist producing aluminum-coated steel, zinc-coated steel, and various color-coated steel sheets used in automotive parts, home appliances, and construction materials. It currently operates a total of eight production lines, including two domestic coating plants, four color plants, one overseas coating plant, and one overseas color plant line.

POSCO Coated & Color Steel is also regarded as having future growth drivers. ResearchAlum analyzed that the company’s performance could improve due to supplying parts for electric vehicles.

Senior Researcher Seonghwan Choi of ResearchAlum stated, "Through strategic collaboration among POSCO Group companies, we are negotiating entry into the electric vehicle and secondary battery markets, including supplying body chassis battery covers for electric vehicles."

He added, "The ‘AL HPF (High-Pressure Formed Aluminum Body)’, a lightweight automotive body chassis component, is set to expand its application from internal combustion engine vehicles to electric vehicles."

POSCO Coated & Color Steel developed ‘ALCOSTA’, an ICB (Inter Connect Board) cover for electric vehicle battery packs. Compared to previous sheets made entirely of aluminum, ALCOSTA adopts an aluminum coating method, enabling cost reduction. It also features a high ignition point, offering excellent safety.

Researcher Choi analyzed, "As raw material price increases have been passed on to selling prices, profitability is improving," adding, "With expanded price spreads and yield improvements, we expect a 'surprise earnings' performance in the first half of this year." He further noted, "With record-breaking quarterly results, a revaluation is anticipated."