[Click eStock] POSCO International's Profit Growth to Become Evident Next Year... Target Price Raised

On August 1, Shinhan Investment Corp. raised its target price for POSCO International from 57,000 won to 60,000 won. The company maintained its 'Buy' investment rating.

Park Kwangrae, a researcher at Shinhan Investment Corp., stated, "For now, the narrative related to the gas upstream business will determine the stock price direction," adding, "The target price has been raised to 60,000 won to reflect an adjustment in the market risk premium."

He further added, "Annual operating profit is expected to reach 1.19 trillion won in 2025 (+6.4%) and 1.33 trillion won in 2026 (+12.2%), showing a clear earnings growth momentum starting next year."

Park also noted, "Senex, the Australian subsidiary, is expected to complete production expansion by the end of the year, and is projected to achieve 63.7 billion won (+44.7%) in operating profit in 2026. The commercial operation of a palm oil refinery with an annual capacity of 500,000 tons is also expected to contribute to the company's performance."

Meanwhile, in the second quarter of this year, POSCO International recorded an operating profit of 313.7 billion won, a 10.3% decrease compared to the same period last year. Net profit plummeted by 52.9% year-on-year, mainly due to valuation losses on hedging derivatives for accounts receivable caused by the strong euro, as well as asset impairment related to the sale of Australia Holdings (Narrabri bituminous coal).