Corporate Logo(source: posco-inc.com)
On April 25, Samsung Securities revised down both its earnings forecast and target price for POSCO Holdings (005490), citing uncertainty in the contribution of its battery materials business and continued reliance on steel operations.
In a report reviewing POSCO Holdings’ recent performance, analyst Baek Jae-seung stated, “As earnings contribution from the secondary battery materials business remains uncertain through this year, the company's valuation will likely be driven by the performance of its steel segment for the time being.”
Samsung Securities lowered its target price by 7.5% to 370,000 KRW and cut its 2025 operating profit estimate by 6% to 3.0952 trillion KRW.
POSCO Holdings posted a consolidated operating profit of 570 billion KRW for the first quarter of 2025, down 1.7% year-on-year and broadly in line with market consensus. However, Baek noted that the result was mostly in line due to lowered market expectations.
“The steel segment is expected to benefit from a widening spread due to further declines in input costs during the second quarter, but a meaningful recovery in average selling prices (ASP) has yet to materialize,” Baek explained.
He pointed to several factors that could impact the steel business in the second half of the year: the possible imposition of U.S. tariffs following a 90-day grace period in July, anti-dumping investigations on Japanese and Chinese hot-rolled steel, and China’s stance on steel production cuts.
Baek added, “Most of the key developments that could influence steel market conditions are expected to unfold in the second half of the year. Although earnings momentum is lacking in the first half, the current valuation—near a historical PBR low of 0.3—suggests a potential bottom ahead of expected catalysts materializing later this year.”
*[KOSPI]POSCO Holdings(005490) is a holding company that establishes the overall growth strategy of the group. It is composed of six business sectors: steel, eco-friendly infrastructure(trade sector), eco-friendly infrastructure(construction sector), eco-friendly infrastructure(logistics, etc.), eco-friendly future materials sector and other sectors. The market capitalization is 20.8 trillion won(as of April 24, 2025, closing price).
Corporate Logo(source: posco-inc.com)
On April 25, Samsung Securities revised down both its earnings forecast and target price for POSCO Holdings (005490), citing uncertainty in the contribution of its battery materials business and continued reliance on steel operations.
In a report reviewing POSCO Holdings’ recent performance, analyst Baek Jae-seung stated, “As earnings contribution from the secondary battery materials business remains uncertain through this year, the company's valuation will likely be driven by the performance of its steel segment for the time being.”
Samsung Securities lowered its target price by 7.5% to 370,000 KRW and cut its 2025 operating profit estimate by 6% to 3.0952 trillion KRW.
POSCO Holdings posted a consolidated operating profit of 570 billion KRW for the first quarter of 2025, down 1.7% year-on-year and broadly in line with market consensus. However, Baek noted that the result was mostly in line due to lowered market expectations.
“The steel segment is expected to benefit from a widening spread due to further declines in input costs during the second quarter, but a meaningful recovery in average selling prices (ASP) has yet to materialize,” Baek explained.
He pointed to several factors that could impact the steel business in the second half of the year: the possible imposition of U.S. tariffs following a 90-day grace period in July, anti-dumping investigations on Japanese and Chinese hot-rolled steel, and China’s stance on steel production cuts.
Baek added, “Most of the key developments that could influence steel market conditions are expected to unfold in the second half of the year. Although earnings momentum is lacking in the first half, the current valuation—near a historical PBR low of 0.3—suggests a potential bottom ahead of expected catalysts materializing later this year.”
*[KOSPI]POSCO Holdings(005490) is a holding company that establishes the overall growth strategy of the group. It is composed of six business sectors: steel, eco-friendly infrastructure(trade sector), eco-friendly infrastructure(construction sector), eco-friendly infrastructure(logistics, etc.), eco-friendly future materials sector and other sectors. The market capitalization is 20.8 trillion won(as of April 24, 2025, closing price).