[Click eStock] "SG, Overseas Expansion Expectations"

On the 23rd, SK Securities analyzed that SG's Ukraine reconstruction project is only part of its overseas expansion plan, and the essence of its growth lies in penetrating new markets through the new product ‘Eco Steel Ascon’.

Heo Seon-jae, a researcher at SK Securities, stated, "The outcome of former President Donald Trump's election in the U.S. presidential race is also an event that could accelerate the end of the war," adding, "SG is a representative company that can generate actual sales by participating in the 650 trillion won-scale Ukraine reconstruction project that will eventually take place."

He added, "The possibility of former President Trump, who is extremely skeptical about the U.S. support for the Ukraine war, returning to power is increasing," and noted, "This is a good time to pay attention to SG, which seems suitable not only for simple ‘Trump trading’ but also for ‘Trump investing.’"

Heo expected, "Since about 60 billion won in funding for overseas expansion has been completed, the supply and demand burden will also be limited."

Furthermore, he analyzed, "SG announced plans to enter the Ukraine, India, and Indonesia markets together with POSCO International," and explained, "The background of overseas expansion is thanks to the new product ‘Eco Steel Ascon,’ which has eco-friendly, low-cost, and high-strength characteristics compared to existing Ascon products." He predicted, "In March this year, a contract was signed with the largest European steel company for the free supply of steel slag worth 4 trillion won over 10 years," and added, "After road demonstration pavement tests in the fourth quarter of this year, large-scale orders and sales recognition will begin from the first quarter of next year."

Heo said, "SG is understood to be aiming to generate Eco Steel Ascon sales at least at the trillion-won level in Ukraine in the mid to long term."