[Click eStock] "Pungsan, a Major Beneficiary of Dong Price Increase, Target Price Raised to 66,000 Won"

On the 9th, Korea Investment & Securities named Poongsan as the top pick among steel and non-ferrous metal sectors, benefiting most from the rise in copper prices. The target price was also raised by 10%, from 60,000 KRW to 66,000 KRW.

Choi Moon-seon, a researcher at Korea Investment & Securities, maintained a neutral investment opinion on the steel and non-ferrous metal sectors in the report released that day but identified Poongsan and POSCO Holdings as beneficiaries. Regarding the choice of POSCO Holdings as the second-best pick, he explained, "The stock price declined due to weak steel market conditions and falling lithium prices, which lowered expectations for the secondary battery materials and components business, but we consider the current price attractive in the long term."

He emphasized focusing on copper within non-ferrous metals. Due to the impact of electric vehicles, renewable energy, AI expansion, and U.S. power grid investments, copper demand is increasing, while supply is becoming increasingly difficult to expand due to ESG factors. Researcher Choi Moon-seon stated, "As supply shortages continue, copper prices are expected to show a long-term upward trend," adding, "On the other hand, zinc and lead prices are expected to stagnate or decline unless other significant variables intervene due to weak demand." This is why Poongsan was presented as the top pick.

He predicted that the steel market will continue to follow an L-shaped cycle. Researcher Choi Moon-seon said, "Steel companies need to reduce production capacity to improve the supply-demand structure, but such movements have not yet occurred," and forecasted, "Since 2010, the steel market in Northeast Asia has been experiencing an L-shaped cycle, and it will be difficult to break away from this trend going forward."