[Click eStock] "Hyundai Steel, Supply and Demand Expectations Due to China's Thick Plate Anti-Dumping Tariffs"

Target Price Maintained at 35,000 KRW

Yuanta Securities analyzed on the 21st that Hyundai Steel is expected to breathe a sigh of relief as the government pushes for the imposition of anti-dumping tariffs on Chinese steel plates. The target stock price was maintained at 35,000 KRW, with a 'Buy' investment rating.

Earlier, the Trade Commission of the Ministry of Trade, Industry and Energy confirmed in a meeting the day before that there was dumping behavior and potential domestic industry damage regarding Chinese carbon steel and alloy steel hot-rolled steel plates, recommending the Ministry of Economy and Finance impose provisional anti-dumping tariffs of up to 38.02%.

Researcher Hyunsoo Lee of Yuanta Securities stated, "A positive event has occurred," and assessed, "If the Ministry of Economy and Finance implements the provisional measures, it is estimated to have a positive impact on domestic steel plate prices and supply-demand." The representative domestic steel plate manufacturers are Hyundai Steel, POSCO, and Dongkuk Steel.

However, earnings improvement is expected to begin from the second quarter of this year. Researcher Lee explained, "The first quarter is observed to have negative effects on production and sales due to fewer business days and seasonal factors, and strike issues have also lowered the operating rates of some factories. Operating profit growth is expected to occur from the second quarter, when sales volume expansion and spread maintenance or slight improvement are anticipated."