[Click eStock] "POSCO International's Share Price Fails to Reflect Growth"

On October 28, Shinhan Investment & Securities raised its target price for POSCO International from 60,000 won to 64,000 won.

Park Kwangrae, a researcher at Shinhan Investment & Securities, explained the reason for the target price increase, stating, "The execution of key projects related to mid- to long-term growth drivers is expected to lead to a revaluation of the stock."

POSCO International reported third-quarter sales of 8.2 trillion won, down 1.3% year-on-year, while operating profit fell 11.6% over the same period to 315.9 billion won.

The energy division's operating profit rose 3.4% year-on-year to 197.4 billion won. Park noted, "Although operating profit from the Myanmar gas field declined due to a decrease in the cost recovery ratio (a profit-sharing structure for investment cost reimbursement), Australia's Senex saw increased sales volume and operating profit thanks to the gradual operation of new gas processing facilities."

The materials division's operating profit was 114.2 billion won, a decrease of 30.4% compared to last year. Park stated, "Steel trading achieved 67.3 billion won in operating profit, leveraging the strong euro and crisis management capabilities through its global network, despite ongoing unfavorable trade conditions. The traction motor core business turned profitable as sales volume increased by 561,000 units due to the expansion of hybrid electric vehicle (HEV) sales, despite concerns about a slowdown in the global electric vehicle market."

Park believes that POSCO International's current stock price does not reflect its future profit growth. He said, "We maintain a Buy rating and raise the target price to 64,000 won, reflecting adjustments to the market risk premium and beta. Continued growth in the traction motor core business will contribute to stable company-wide profit growth in 2026. The mid- to long-term growth stories in North American LNG, rare earth elements, and uranium enrichment businesses are also expected to act as catalysts for the stock price."