[Alpha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities lowered its target price from 600,000 won to 530,000 won as it lowered its first-quarter earnings estimate for POSCO Holdings (005490) on the 1st. However, it was analyzed that the risk of falling stock prices is limited.
Shinhan Investment & Securities predicted POSCO Holdings' first-quarter sales and operating profit of 19.3 trillion won and 423.3 billion won, respectively, in a report. This is below the market consensus of 19.4 trillion won and 711.4 billion won.
"The main reason for the sluggish performance is that the average sales unit price (ASP) in the steel sector does not rise as much as expected, and that one-off costs, including labor costs, are additionally reflected in the first quarter following the fourth quarter," said Shinhan Investment & Securities Co.
Shinhan Investment & Securities expects the company to bottom out in the first quarter and show a cascading recovery from the second quarter. Researcher Park explained, "We will record operating profit of 600 billion won in the second quarter, showing that steel ASPs and sales volume are slightly rising compared to the first quarter."
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
