[Click eStock] "POSCO Future M Turns to Loss in Anode Material Segment in Q3"

Hana Securities analyzed on the 31st that POSCO Future M is experiencing delays in the recovery of its existing business and new business normalization. The target stock price was lowered from 273,000 KRW to 267,000 KRW.

POSCO Future M recorded consolidated sales of 922.8 billion KRW and an operating profit of 13.7 billion KRW in the third quarter of this year. Compared to the same period last year, sales decreased by 28% and operating profit dropped by 96%.

Hyunsoo Kim, a researcher at Hana Securities, explained, "Sales in the cathode material sector fell by 38% compared to the same period last year" and added, "this was due to continued sluggish electric vehicle sales in Europe." He further noted, "Profitability turned negative due to a decline in selling prices and losses from some obsolete inventory."

He estimated that in the fourth quarter, sales will be 892 billion KRW with an operating loss of 1.7 billion KRW, which represents a 22% decrease in sales compared to the same period last year. Additionally, he emphasized that cathode material shipments are expected to be similar to the previous quarter and profitability is likely to worsen due to initial yield issues during the operation of new production lines.

Researcher Kim explained, "Considering the slowdown in electric vehicle demand, weakening momentum of electrification policies, and intensified competition in Europe, POSCO Future M is highly likely to adjust its long-term production capacity target from the existing 1 million tons to below 600,000 tons."