POSCO Future M is soaring from the early hours of trading on the 24th. With expectations that the first-quarter earnings will exceed forecasts, investor sentiment appears to have expanded following Tesla's successful rebound on the previous day (23rd).
As of 9:57 AM, POSCO Future M is trading at 289,500 KRW, up 5.27% (14,500 KRW) compared to the previous day.
Lee Chang-min, a researcher at KB Securities, stated, "POSCO Future M's first-quarter operating profit is expected to be 45.3 billion KRW, a 124% increase compared to the same period last year, surpassing the consensus (market average forecast of 27 billion KRW)." He analyzed, "The impact of the slowdown in electric vehicle demand will continue for the time being, but in the case of cathode materials, the proportion of binding contracts is relatively high, so additional sales volume decline compared to competitors will be limited."
He also evaluated, "Despite the difficult environment, profitability is relatively well defended, so the company is likely to attract more attention in the market compared to competitors within the industry for the time being."
Tesla's rebound is also cited as a factor driving the stock price. Tesla CEO Elon Musk announced during a conference call that "'Model 2' production will begin early next year." Model 2 is a low-priced electric vehicle.
By advancing the production schedule planned for the second half of next year, it is interpreted as an active response to the weakened demand. Accordingly, Tesla is rising more than 13% in after-hours trading.
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