Hanil Steel stock, 2023 Q1 performance and outlook Introduction
Hanil Steel stock, 2023 Q1 performance and outlook Introduction
Hello. Investors who are interested in the steel industry. Today, we will look at Hanil Steel stock listed on the KOSPI. Hanil Steel is a company that manufactures and sells steel products such as steel plates and shapes, and supplies them to various fields such as automobiles, shipbuilding machinery, and construction. Hanil Steel announced its first quarter results for 2023, but what kind of achievements did it achieve and what is the outlook for the future? Let’s take a look together.
Body 2023 Q1 performance summary
- Sales of 59.2 billion won, operating profit of -400 million won, net profit of 1.2 billion won1
- Sales decreased by 2.7% compared to the same period last year, but operating profit increased by 50.1%. Net income increased by 125.1% compared to the same period last year2.
- The main reason for the increase in operating profit was the increase in revenue from steel plate cutting services and rentals and the decrease in cost of sales due to the decline in raw material prices1.
- The main reason for the increase in net income was the increase in operating profit and the decrease in corporate tax expenses1.2023 Q2 outlook and target price
- In the second quarter of 2023, sales and operating profit are expected to increase due to the continuous increase in revenue from steel plate cutting services and rentals and the recovery of demand for steel products2.
- In addition, the long-term growth potential is high due to the price stabilization and export activation due to the structural improvement and oversupply resolution of the steel industry3.
- The current price of Hanil Steel stock is 3,100 won, PER is -49.93 times, PBR is 0.40 times1. This is lower than the industry average PER of 4.55 times and PBR of 0.44 times1.
- Therefore, Hanil Steel stock is considered undervalued, and I think there is enough room for price increase due to future performance improvement and industry environment improvement.
- I calculated the target price of Hanil Steel as about 164 won per share based on the consolidated EPS of 36 won in 2023 and applying the industry average PER of 4.55 times.
Conclusion Hanil Steel has been improving its performance with the increase in revenue from steel plate cutting services and rentals and the recovery of demand for steel products. In addition, it has a high potential for long-term growth due to price stabilization and export activation due to structural improvement and oversupply resolution of the steel industry. The current price shows a lower value indicator than the industry average, so it is considered undervalued. I calculated the target price of Hanil Steel as about 164 won, and I hope you will refer to it.