[EQUITIES] ‘Hyundai Steel performs well in Q2’
[THE INVESTOR] Hyundai Steel will post solid earnings in the second quarter, said Hana Financial Investment on July 17, raising the target price to 77,000 won (US$68.23) from 73,000 won.
Its second-quarter revenue on a standalone basis will reach 4.5 trillion won and operating profit will meet market expectations at 355.9 billion won, estimated analyst Park Seong-bong.
Prices of raw materials plunged in the second quarter while automotive steel sheet price rise since May will be fully reflected from the third quarter, forecast the analyst.
Steel pipes, however, are entering the low season and benchmark price for steel reinforcement bars has fallen, noted Park, adding that the steelmaker’s operating profit in the third quarter will come in at 329.5 billion won.
The analyst maintained a “buy” recommendation and suggested it as the “second most favorable” in the industry saying that domestic steel reinforcement market will remain strong and Hyundai Motor Group’s sales in China will improve gradually.
By Hwang You-mee (firstname.lastname@example.org)