Posco shows signs of recovery with 6-year-high profits
[THE INVESTOR] The nation's largest steelmaker shows signs of financial recovery this year amid years of heavy corporate restructuring as securities companies expect Posco’s operating profit this year to reach its highest in six years.
The company‘s net profit for the first quarter hit 976.9 billion won (US$865 million) compared 338.4 billion won a year earlier. Posco’s operating profit also jumped to 1.4 trillion won from 659.8 billion won last year through its own internal efforts to generate revenue.
The steelmaker posted an operating profit to sales ratio of 10.8 percent last year, 7.3 percent higher than the world‘s largest steelmaker, ArcelorMittal.
Posco’s share prices are also continuing to bounce back this month, returning to 300,000 won for the first time in 31 months. Posco has been steadily raising its share price for the past 52 weeks. Over the past year, the rate of increase has exceeded 50 percent.
Last Tuesday, Posco’s share price closed at 300,000 won, the first time reaching the 300,000 won-marker since December 2014. On Friday, the stock value continued its incline reaching 315,000 won.
According to news reports on July 16, Yuanta Securities raised its target price of Posco’s stock from 390,000 won to 410,000 won, while Eugene Investment & Securities raised its target price to 400,000 won.
By Julie Jackson/The Korea Herald (firstname.lastname@example.org)