[Click eStock] "POSCO Future M, Limited Direct Impact from US Tariffs"

On the 18th, KB Securities analyzed that the direct negative impact on POSCO Future M from the US Trump administration's tariff imposition is limited. They maintained the investment opinion 'Buy' and the target price of 170,000 KRW.

POSCO Future M is the only company in Korea that simultaneously produces and supplies anode and cathode materials for batteries.

KB Securities estimated POSCO Future M's first-quarter performance this year at 875.3 billion KRW in sales and 11.8 billion KRW in operating profit, representing decreases of 23% and 69% respectively compared to the same period last year. Due to front-end inventory adjustments, sales volumes of GM's N86, Samsung SDI's NCA, and LG Energy Solution's N65 cathode materials slightly underperformed expectations, but shipments of Hyundai Motor-LGES JV's N87 are expected to remain solid.

POSCO Future M's stock price has been weak due to the issue of the Trump administration's 25% tariff on imported automobiles and reciprocal tariffs. This is because GM electric vehicles adopting POSCO Future M's cathode materials are assembled not only in the US mainland but also in Mexico and Canada, exposing them to sales volume decline risks due to price pass-through.

Analyst Changmin Lee stated, "Contrary to market concerns, the direct negative impact is expected to be limited," and analyzed, "The burden of reciprocal tariffs currently imposed at around 10% will be borne by the front-end customers importing POSCO Future M's cathode materials, and POSCO Future M's cathode material supply contracts are in the form of mid- to long-term binding agreements."