[Special Stock] 'Decrease in Rebar Sales' Korea Steel, Down 4.29%

The stock price of Hankuk Steel is weak in the early trading session. As of 9:51 a.m. on the 24th, Hankuk Steel is trading at 11,150 won, down 500 won (-4.29%) from the previous trading day.

On this day, SK Securities downgraded its investment opinion on Hankuk Steel from 'Buy' to 'Neutral,' stating that "the potential for stock price increase is limited."

Hankuk Steel recorded sales of 148 billion won and an operating profit of 1.05 billion won in the first quarter. These represent decreases of 36.5% and 93.8%, respectively, compared to the same period last year. Sales volume of rebar was 155,000 tons, down 30.5%, with a larger decline compared to other steelmakers. Researcher Shin noted, "The selling price also fell 7% compared to the previous quarter," adding, "Due to the increase in fixed cost ratio caused by the sales decline, the operating profit margin was the lowest since 2020."

The nominal domestic consumption of rebar in the first quarter was 1.91 million tons, the lowest level since 2015. Researcher Shin added, "Poor construction starts continue. Reflecting this, domestic steelmakers recently lowered their sales targets for this year from the original 9.2 million tons to 8.5 million tons, the lowest level since 2011."