Posco Holdings and Posco Future M Shares Extend Rally Following Ambitious Business Expansion


#Posco Holdings and Posco Future M Shares Extend Rally Following Ambitious Business Expansion Guidance

Shares of steelmaker Posco Holdings and its battery-materials affiliate, Posco Future M, continued to rally in the South Korean stock market on Wednesday. The companies’ recent guidance for business expansion has generated significant investor interest.

Posco Holdings’ shares surged as much as 5.9% to 517,000 won ($408.58) in early trade, indicating a potential sixth consecutive session of gains.

Posco Future M also experienced a positive trajectory, heading towards a four-session winning streak. The stock rose as much as 5.5% to KRW483,000 in morning trade, surpassing the benchmark Kospi’s 0.3% increase.

According to FactSet data, Posco Holdings’ shares have soared approximately 30% in the past month. The rally gained momentum on July 11 when the parent company announced its intention to generate KRW62 trillion in revenue from its battery materials business by 2030.

This target revenue surpasses the current total market capitalization of Posco Holdings, estimated at KRW42 trillion as of Wednesday. The revenue goal encompasses not only battery materials but also steel and all other segments.

To achieve their ambitious plans, Posco intends to increase its annual production of cathode, anode, and lithium materials to 1.0 million, 370,000, and 43,000 tons respectively by 2030. Additionally, they aim to boost their annual output of high-purity nickel to 240,000 tons by the same year.

Furthermore, Posco has set a target of producing 70,000 tons of lithium, nickel, and cobalt from battery recycling by 2030.

Lee Eu-gene, an analyst at Eugene Investment & Securities, expressed confidence in Posco’s battery-materials business expansion plans. In a recent research note, she raised the estimated value of the company’s lithium segment by 18% to KRW7.7 trillion.

Posco Holdings and Posco Future M’s stocks have mirrored their optimistic growth projections, reflecting investor confidence in their long-term prospects.

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