[Alpha Biz= Paul Lee] KB Securities maintained its “buy” rating and target price of 280,000 won for POSCO Future M, saying new orders for anode materials could support the stock despite near-term earnings weakness.

Analyst Lee Chang-min said in a report on March 11 that the company’s heavy exposure to U.S. customer General Motors (GM) means short-term performance could be affected by uncertainties surrounding the Inflation Reduction Act (IRA).

KB Securities forecasts 2025 revenue of 2.98 trillion won, up 2% year-on-year, and operating profit of 72.7 billion won, a 121% increase from last year.

Lee said the key catalyst for a potential share rebound is the company’s anode material business. He highlighted POSCO Future M’s recent announcement of a new artificial graphite production subsidiary in Vietnam, which is expected to have annual capacity exceeding 20,000 tons and benefit from lower electricity costs compared with domestic plants.

Because new investments in the battery materials sector increasingly follow a “pre-order, then investment” strategy, Lee said the project raises the likelihood of new anode material orders in the near term.

He also expects a modest recovery in cathode and anode material shipments in the first quarter, supported by increased shipments of NCA cathodes for Samsung SDI’s energy storage systems, as well as slight rebounds in deliveries of N65 for Ford in Europe and N87 for Hyundai Motor following inventory adjustments in the fourth quarter.

However, demand for anode materials remains weak, though the operating loss is expected to narrow compared with the previous quarter, when the company booked large one-off costs, he added.

 

 

 

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