Corporate Logo(source: hyundai-steel.com)
Samsung Securities announced on July 8 that it has raised its target price for Hyundai Steel (004020) from 34,000 won to 44,000 won, citing expectations for improved market conditions in the second half of the year. The brokerage maintained its “Buy” rating.
Analyst Baek Jae-seung stated, “If preliminary anti-dumping tariffs on hot-rolled steel imports from China and Japan—expected to be decided around July or August—are implemented, we may see an improvement in earnings driven by higher domestic hot-rolled steel prices.” He added, “It is also worth noting the possibility that the steel production cuts pledged by the Chinese government in March may begin to take effect in earnest during the second half.”
Baek further noted, “Recent high-level meetings in China have emphasized the need to regulate disorderly price competition among companies and to phase out outdated facilities. As a result, expectations for industry-wide restructuring and production cuts are likely to grow.”
However, Hyundai Steel’s second-quarter earnings are projected to fall below market consensus. Samsung Securities estimated that the company’s consolidated revenue for the second quarter would reach 6 trillion won, up 7.5% from the previous quarter, while operating profit is projected at 75.2 billion won, marking a return to profitability. Nevertheless, the operating profit estimate falls 27% short of market expectations.
Baek commented, “Sales volume is expected to recover quarter-on-quarter due to seasonal demand, and the spread for flat steel products is likely to widen, supported by lower input costs and rising plate prices.”
However, he added, “Continued weak demand has narrowed the spread for long steel products, and a one-month production halt at the Incheon rebar plant in April led to increased fixed costs—factors that are expected to contribute to the earnings falling below consensus.”
*[KOSPI] Hyundai Steel(004020) is a subsidiary of the Hyundai Motor Group and is the largest electric arc furnace steelmaker in Korea. It consists of blast furnaces, electric arc furnaces, and mobility materials business units. The market capitalization is 4.717 trillion won (as of July 7, 2025, closing price).
Corporate Logo(source: hyundai-steel.com)
Samsung Securities announced on July 8 that it has raised its target price for Hyundai Steel (004020) from 34,000 won to 44,000 won, citing expectations for improved market conditions in the second half of the year. The brokerage maintained its “Buy” rating.
Analyst Baek Jae-seung stated, “If preliminary anti-dumping tariffs on hot-rolled steel imports from China and Japan—expected to be decided around July or August—are implemented, we may see an improvement in earnings driven by higher domestic hot-rolled steel prices.” He added, “It is also worth noting the possibility that the steel production cuts pledged by the Chinese government in March may begin to take effect in earnest during the second half.”
Baek further noted, “Recent high-level meetings in China have emphasized the need to regulate disorderly price competition among companies and to phase out outdated facilities. As a result, expectations for industry-wide restructuring and production cuts are likely to grow.”
However, Hyundai Steel’s second-quarter earnings are projected to fall below market consensus. Samsung Securities estimated that the company’s consolidated revenue for the second quarter would reach 6 trillion won, up 7.5% from the previous quarter, while operating profit is projected at 75.2 billion won, marking a return to profitability. Nevertheless, the operating profit estimate falls 27% short of market expectations.
Baek commented, “Sales volume is expected to recover quarter-on-quarter due to seasonal demand, and the spread for flat steel products is likely to widen, supported by lower input costs and rising plate prices.”
However, he added, “Continued weak demand has narrowed the spread for long steel products, and a one-month production halt at the Incheon rebar plant in April led to increased fixed costs—factors that are expected to contribute to the earnings falling below consensus.”
*[KOSPI] Hyundai Steel(004020) is a subsidiary of the Hyundai Motor Group and is the largest electric arc furnace steelmaker in Korea. It consists of blast furnaces, electric arc furnaces, and mobility materials business units. The market capitalization is 4.717 trillion won (as of July 7, 2025, closing price).