Poongsan's Profits Rise Amid Copper Price Surge and Defense Sector Gains
Sangsangin Investment & Securities has upgraded Poongsan's stock rating to 'Buy' due to rising copper prices and a robust defense sector, maintaining a target price of 150,000 won. The company's Q4 operating profit is expected to increase 167% year-on-year to 90.5 billion won, although it falls short of the consensus estimate. Despite strong copper prices, profitability in the defense sector is predicted to decline, with revenues anticipated at 439.1 billion won due to delayed domestic deliveries.
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Sangsangin Investment & Securities has upgraded Poongsan's stock rating to 'Buy' from 'Hold', maintaining a target price of 150,000 won, following a significant increase in copper prices and strength in its defense business. Poongsan's estimated operating profit for Q4 of the previous year is projected to rise 167% year-on-year to 90.5 billion won, though this is below the consensus estimate of 98.1 billion won.
The rolled products division is expected to contribute 29.4 billion won in operating profit, aided by higher product prices due to surging LME copper prices. However, profitability expectations for the defense sector are lower than in Q3, with revenue forecasted at 439.1 billion won, below guidance, due to deferred domestic deliveries. Analysts anticipate continued copper price strength in 2025, influenced by geopolitical tensions and tariff discussions, which could impact global pricing dynamics.
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