[Click eStock] "SeAH Besteel Holdings, Profit Recovery Expected in Q2 as Well"

Daishin Securities forecasted on the 3rd that SeAH Besteel Holdings is likely to maintain its profit recovery trend in the second quarter following the first quarter. The investment opinion 'Buy' and the target price of 32,000 KRW were maintained.

SeAH Besteel Holdings' first-quarter sales amounted to 953.1 billion KRW, down 15.5% year-on-year, and operating profit decreased by 70.3% to 21.3 billion KRW, meeting market expectations during the same period.

Researcher Lee Taehwan of Daishin Securities explained, "Besteel has shown a gradual recovery as sales volume increased by more than 50,000 tons compared to the previous quarter despite continued sluggishness in the specialty steel end-use industries. Additionally, Changwon Specialty Steel recorded sales of 115,000 tons, exceeding lowered expectations due to weak demand for stainless steel (STS)."

Lee said that profit recovery is expected in the second quarter based on increased operating days and improved additional sales volume due to peak season demand. He added, "Although it is still difficult to assert a structural demand recovery given the macro environment, both Besteel and Changwon Specialty Steel confirmed an increase in sales volume starting from the low point in the fourth quarter of last year. In the second half, it is necessary to pay attention to the recovery trend of specialty steel and STS performance as well as the order situation for used nuclear fuel transport and storage casks (CASK)."