[Click e-Stock] "POSCO Future M Sees Surge in Cathode Shipments... Target Price Raised"

On October 2, Daol Investment & Securities analyzed that POSCO Future M is expected to post strong third-quarter results due to a sharp increase in cathode material shipments. The firm maintained its 'Buy' investment rating and raised its target price to 210,000 won.

Daol Investment & Securities forecast that POSCO Future M's third-quarter revenue and operating profit will reach 924.1 billion won and 33.6 billion won, respectively, representing year-on-year increases of 0.1% and 2,356%. Yoo Woong, a researcher at Daol Investment & Securities, said, "We expect operating profit to exceed market expectations by about 15 billion won," adding, "Cathode material shipments are projected to reach 17,000 tons, driven by the full-scale application of qualified precursors and an increase in supply to General Motors to over 9,000 tons, which is the main driver of growth."

He further projected that both cathode and anode material supply volumes will continue to increase. He explained, "Shipments of N86 cathode materials for General Motors are expected to reach around 8,000 tons in the fourth quarter, and GM's EV sales, as tallied through August, have hit record levels."

Regarding NCA cathode material supply, he emphasized, "For POSCO Future M, volume growth is anticipated from the second quarter of next year, as the SPE joint venture lines 1 and 2, operated by client companies Samsung SDI and Stellantis, begin to ramp up. For the second line, which is dedicated to ESS, a surge in new demand has already been confirmed."

Researcher Yoo also highlighted, "The outlook for anode materials is expected to improve starting from January this year," adding, "From that point, Chinese anode materials will be subject to an anti-dumping tariff rate of 93.5%, which will enable POSCO Future M to rapidly expand its market share."