Core Viewpoint - The article emphasizes the importance of value investing and highlights POSCO (PKX) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6]. Group 1: Value Investing Metrics - Value investing is a popular strategy that focuses on identifying undervalued stocks using fundamental analysis [2]. - The Zacks Rank system is utilized to find winning stocks based on earnings estimates and revisions [1]. - PKX currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [3]. Group 2: Financial Ratios - PKX has a Price-to-Sales (P/S) ratio of 0.27, which is lower than the industry average of 0.33, suggesting it may be undervalued [4]. - The Price-to-Cash Flow (P/CF) ratio for PKX is 3.31, significantly lower than the industry average of 12.62, indicating a solid cash outlook [5]. - Over the past 12 months, PKX's P/CF has fluctuated between 2.84 and 6.29, with a median of 5.17, further supporting its valuation as attractive [5]. Group 3: Overall Assessment - The combination of PKX's strong earnings outlook and favorable financial metrics positions it as an impressive value stock at the moment [6].

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenue reached KRW 17.4 trillion, and operating profit was KRW 570 billion, showing improvement from the previous quarter despite economic uncertainties [4][10] - Operating profit rebounded from KRW 95 billion to KRW 568 billion across all business segments, reaching the same level as the previous year [10][11] - EBITDA for the quarter was KRW 1.6 trillion, with consolidated CapEx amounting to KRW 1.5 trillion [10] Business Segment Data and Key Metrics Changes - The industrial segment's operating profit improved from 2.3% to 3% quarter-on-quarter, with an operating margin recovery to 3.9% [11] - The overseas steel business showed improvement due to strong performance in engine operations and reduced losses at the Zhangjiagang plant in China [11] - POSCO Future M's turnaround to profit led to a reduction of overall operating losses in energy materials by half quarter-on-quarter [11][24] Market Data and Key Metrics Changes - The domestic steel market is showing moderate signs of stability, with iron ore and coking coal prices stabilizing [4][5] - POSCO's crude steel output declined by 5.5% quarter-on-quarter due to maintenance works, but selling prices slightly increased, and raw material costs remained stable [21] - The Indian subsidiary has expanded sales of high-margin products, while losses in China's Zhangjiagang plant have reduced due to rising regional stainless steel prices [23] Company Strategy and Development Direction - The company signed an MOU with Hyundai Motor Group to enhance collaboration in the future mobility materials business and to jointly invest in a steelmaking plant in the US [6][7] - POSCO is focusing on upstream expansion in India, the US, and Indonesia, with plans to establish a specialized automotive steel sheet company in India [14][15] - The company aims to comply with the USMCA "melted and poured" origin rule to ensure reliable supply of steel products to its auto panel manufacturing plant in Mexico [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, indicating that while Q1 results are not conclusive for recovery, there are positive signals [5][6] - The management acknowledged the challenges posed by the global tariff war and economic uncertainties but emphasized ongoing restructuring efforts to improve performance [3][39] - Future profitability in energy materials is expected to stabilize by 2027 as plants reach stable operations [42] Other Important Information - The company divested six underperforming assets in Q1, raising KRW 286.6 billion, contributing to a cumulative cash generation of KRW 949.1 billion since last year [17] - The CapEx plan for 2025 is set at KRW 8.8 trillion, with allocations of 43% to steel, 34% to energy materials, and 17% to infrastructure [19][20] - The company is actively pursuing ESG-related initiatives, including establishing a Human Rights Management framework aligned with global standards [29] Q&A Session Summary Question: Plans for improving performance of low-performing businesses like PZSS in China - Management acknowledged the overcapacity in the stainless steel market in China and indicated ongoing restructuring efforts, with a need to assess the situation further [38][39] Question: Projections for energy materials revenue and operating profits - Management stated that while initial stages of operation are causing losses, they expect to see profitability starting in the latter part of next year as customer certifications are achieved [41][42] Question: Update on capital raising for POSCO Future M - Management confirmed that they are exploring various financing options, including potential additional capital raising, due to higher-than-anticipated CapEx needs [44] Question: Impact of trade barriers on sales volume - Management explained that the impact varies by region, with some overseas operations potentially benefiting from tariff changes, while others may face challenges [64][66] Question: Progress on integrated mill investment in India - Management confirmed that the total investment is approximately KRW 11 trillion, with plans to implement it over five years, and they are currently finalizing the site selection [55][117] Question: Updates on lithium price projections - Management indicated that while there is a projected gradual price increase due to rising demand, uncertainties from tariff policies complicate predictions [71][72] Question: Financial evaluation of AD filings for heavy plates - Management noted that retail prices are rising post-AD filings, and negotiations with clients are ongoing, aligning with current market trends [122] Question: Acquisition of additional lithium assets - Management confirmed they are leveraging current market conditions to acquire prime lithium assets, but specific details cannot be disclosed at this time [124]

Share Capital and Structure - The total number of issued shares decreased from 84,571,230 to 82,624,377 due to the cancellation of treasury shares, with no change in share capital of KRW 482,403 million[19]. - The number of shares with voting rights is 75,620,779, after accounting for 7,003,598 shares classified as treasury stock[26]. - The company has not made any changes to its share capital in the last five years[16]. - The company’s treasury shares decreased from 8,695,023 to 7,003,598 after the cancellation of shares[23]. - The par value of common stock remains at KRW 5,000 per share[18]. Business Operations and Subsidiaries - The company reported a total of 193 consolidated subsidiaries as of December 31, 2024, an increase of 2 from the previous year[10]. - The company has 6 listed subsidiaries and 187 unlisted subsidiaries as of December 31, 2024[10]. - The company engaged in a vertical spin-off in March 2022, resulting in the formation of POSCO HOLDINGS INC. and a focus on managing the group's businesses[15]. - The company’s business scope has expanded to include management and licensing of intellectual property rights and investment in new technology[8]. Financial Performance - Consolidated profit for 2024 decreased to KRW 1,094,917 million, down 35.5% from KRW 1,698,092 million in 2023[28]. - Earnings per share (consolidated) fell to KRW 14,451, a decline of 35.4% compared to KRW 22,382 in 2023[28]. - Total revenue for 2024 was KRW 72,688,143 million, a decrease of 5.6% from KRW 77,127,197 million in 2023[182]. - Operating profit for 2024 was KRW 2,173,573 million, down 38.4% from KRW 3,531,423 million in 2023[182]. - Profit attributable to owners of the controlling company for 2024 was KRW 1,094,917 million, a decline of 35.5% compared to KRW 1,698,092 million in 2023[182]. - Total gross sales for the company in 2024 amount to 622,009 million KRW, down from 635,387 million KRW in 2023[156]. - Total current assets decreased to KRW 44,029,923 million in 2024 from KRW 46,212,299 million in 2023, reflecting a decline of 4.7%[181]. - Total assets increased to KRW 103,404,199 million in 2024, up from KRW 100,945,394 million in 2023, representing a growth of 2.4%[181]. - Total liabilities increased to KRW 41,953,831 million in 2024 from KRW 41,281,497 million in 2023, marking a rise of 1.6%[181]. Market and Production Insights - Global crude steel production in 2024 is projected at 1,839 million tons, a decrease from 1,850 million tons in 2023, reflecting a 0.6% decline[42]. - POSCO's market share in crude steel production for 2024 is 55%, maintaining its position as a leading producer[49]. - The total sales for the steel segment in 2024 were KRW 62,200,920 million, with an operating income of KRW 1,636,808 million, down from KRW 63,538,698 million and KRW 2,556,779 million in 2023[36]. - The infrastructure (trading) segment reported sales of KRW 42,903,253 million with an operating loss of KRW 1,113,710 million, slightly down from KRW 42,943,752 million and an operating loss of KRW 1,133,512 million in 2023[36]. - POSCO's crude steel production for 2024 is projected at 39,281 thousand tons, a slight decrease from 39,941 thousand tons in 2023[124]. - The utilization rate for POSCO's crude steel production is 86.6% for 2024, with a total capacity of 40,461 thousand tons[126]. Investments and Future Plans - The company plans to enhance its low-carbon product portfolio and aims to produce high value-added products starting in 2026 using a newly established electric furnace[51]. - The company aims to expand motor core production for electric vehicles to 7 million units by 2030[69]. - The company plans to achieve a three-fold increase in gas production in Australia by 2025 following the acquisition of Senex Energy[72]. - The company plans to invest KRW 926,302 million in the 4th stage development of the Myanmar gas field from July 2024 to June 2027[173]. - The company plans to expand its Gwangyang LNG terminal with an investment of 8,733 million KRW, of which 3,430 million KRW has already been invested[153]. Environmental and Sustainability Efforts - The onshore wind power complex in South Korea generates approximately 120,000 MWh of clean energy annually, reducing carbon dioxide emissions by about 49,000 tons[72]. - The company has established multiple R&D centers focusing on low-carbon processes and secondary battery materials to enhance innovation[176]. - The company plans to publish a sustainability report for 2023 and has approved the publication plan[197]. - The company has reported on the Group-wide ESG performance for Q1 2024 and is reviewing its ESG management plan for 2024[197]. Dividends and Shareholder Returns - The pay-out ratio for dividends increased to 69.2% in 2024, up from 44.7% in 2023, reflecting a commitment to returning value to shareholders[28]. Miscellaneous - The company approved the 56th financial statements and scheduled the general meeting of shareholders for March 21, 2024[193]. - The company is participating in the acquisition of hybrid bonds issued by POSCO Future M and has approved the transfer of steel-related business previously owned by POSCO Holdings[194]. - Currency swap valuation gains at the end of December 2024 amounted to KRW 548,353 million, with transaction gains of KRW 79,988 million[167]. - The company has approved the appointment of a Compliance Officer and the establishment of a Greenwashing Review Committee[197][199].

Ta b l e o f C o n t e n t s E x h i b i t 9 9 . 1 P O S C O H O L D I N G S I N C . a n d i t s s u b s i d i a r i e s C o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s fo r t h e y e a r e n d e d D e c e m b e r 3 1, 2 0 2 4 w i t h t h e i n d e p e n d e n t a u d i t o r's r e p o r t Table of Contents Table of Contents | | Page | | --- | --- | | Independent Auditor's Report | 1 | | Consolidated Financial Statements | | | Consolidated Statements of Financial Position | 7 | | Consolidated S ...

Ryan Messick brings an analytical and fundamentally-driven approach to value investing, prioritizing companies with a strong margin of safety and growth catalysts. He models his approach on the legendary Benjamin Graham, updating his strategies for modern times while still using the core principles Graham taught. Other influences on Ryan's investing philosophy and strategy include Warren Buffett, Charlie Munger, and Joel Greenblatt.Ryan provides analysis on companies he has researched, mostly focusing on mi ...

POSCO Holdings Inc. (NYSE:PKX) Q4 2024 Results Conference Call January 31, 2024 1:00 AM ET Company Participants Ki-Seop Jeong - CSO Ban Don-ho - CEO Byeong-Og Yoo - Head-Green Materials & Energy Business Kim Kyung-Han - Head-International Trade Affairs Office Kyung-Sub Lee - Co-Chief-LiB Materials Business & Executive Officer Seung-Jun Kim - Executive Officer & Head of Finance Team Suh Ji-Won - Head-Raw Materials Office Young-Ah Han - Head-IR Team, Executive Officer & SVP Conference Call Participants Eugene ...

POSCO Holdings Inc. (PKX) has effectively localized the manufacturing technique for electrode rods, which are considered a critical element in the steel production process. Electrode rods are high-value-added carbon materials used in electric furnaces to melt steel scrap into molten iron or in refining procedures to eliminate impurities from blast furnace-produced molten iron. These rods convert electrical energy into thermal energy. The wider the diameter and electrode density, the higher the power output, ...

Table of Contents Exhibit 99.1 QUARTERLY REPORT (From January 1, 2024 to September 30, 2024) THIS IS AN ENGLISH TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY. UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND NON-CONSOLIDATED BASIS IN ACCORDANCE WITH THE KOREAN-IN ...

Asia Value & Moat Stocks is a research service for value investors seeking Asia-listed stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e., buying assets at a discount, e.g., net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e., buying earnings power at a discount in great companies like "Magic Formula" stocks, high-quality businesses, hidden champions and wide moat compounders). Sign up here to get st ...

POSCO Holdings Inc. (NYSE:PKX) Q3 2024 Results Conference Call October 30, 2024 2:00 AM ET Company Participants Jeong Kiseop - Chief Strategy Officer Young-Ah Han - IR Conference Call Participants Park Hyun-Wook - Hyundai Motor Company Kim Yoon Sang - HI Investment Securities Eugene Lee - Yin Securities Jeong Jae Heon - DBF Jeong Kiseop Greetings. I'm CSO of POSCO Holdings. My name is Jeong Kiseop. We have closed third quarter revenues and operating profits at levels very similar to the second quarter. Howe ...