[Click eStock] POSCO International, Q2 Operating Profit Expectations

[Asia Economy Reporter Hwang Junho] Mirae Asset Securities raised the target price of POSCO International to 30,000 KRW on the 2nd. This adjustment is based on the analysis that there is sufficient room for further stock price increase considering the pace of earnings improvement and the potential rise in oil prices. The previous target price was 25,000 KRW.

Mirae Asset expects POSCO International's operating profit for the second quarter of this year to reach 155.9 billion KRW. Excluding the Myanmar gas field business, it is forecasted that the trade and investment divisions will achieve record-high performance. The market's expected operating profit is around 114.9 billion KRW. The Myanmar gas field is also expected to see a faster recovery in performance due to rising oil prices.

Sales are also expected to increase by 45.7% year-on-year to 7.6527 trillion KRW. Due to favorable conditions in the commodity market, trade division sales are projected to rise significantly compared to the previous year, and benefits are expected from the nearly doubled motor core production volume (400,000 units).