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POSCO Plans to Build Pilot Plant in Utah, Eyes Lithium Production
ZACKS· 2025-07-03 14:30
Core Insights - Posco Holdings (PKX) is developing a trial lithium processing plant in the U.S. in collaboration with Anson Resources, marking the first initiative by a South Korean company to produce lithium directly in North America, aimed at reducing reliance on Chinese suppliers due to new U.S. import limits [1][7] Group 1: Project Details - The two companies have signed a memorandum of understanding (MoU) to construct the pilot plant in Green River City, Utah, next year, which will assess the viability of Posco's Direct Lithium Extraction (DLE) technology for large-scale production [2] - Anson Resources holds mining rights to a lithium brine location in Utah, providing Posco a competitive advantage over domestic rivals like LG Chem, which relies on local lithium producers instead of direct production [3] Group 2: Technology and Market Strategy - Posco aims to commercialize its DLE technology, developed in 2016, following the successful operation of a demonstration plant in the U.S., with plans to invest in and develop untapped lithium brine lakes across North America [4] - The U.S. is home to some of the world's largest lithium reserves, following Bolivia and Argentina, contained in extensive brine lakes [4] Group 3: Financial Performance - Over the past year, shares of PKX have decreased by 19.8%, while the industry has seen a decline of 25% [4]
POSCO Completes Precursor Plant to Achieve Self-Sufficiency
ZACKS· 2025-06-24 15:21
Group 1 - POSCO Holdings Inc.'s POSCO Future M unit has completed a precursor plant with an annual capacity of 45,000 tons in Gwangyang, Jeollanam-do Province, enhancing its in-house production capabilities for cathode materials [1][2] - The new plant will enable the production of batteries for 500,000 electric vehicles, contributing to supply chain self-sufficiency and quality control [2] - Korea's dependency on Chinese imports for precursors is being addressed by POSCO Future M, which is enhancing its sourcing capabilities for nickel and lithium from within the POSCO group and other non-Chinese sources [3] Group 2 - POSCO Future M aims to become a global top-tier secondary battery materials company by strengthening supply chain management, developing research capabilities, and expanding its product portfolio [4] - PKX stock has experienced a decline of 28.9% over the past year, slightly worse than the industry's decline of 28.5% [6]
POSCO Holdings: Multiple Positives
Seeking Alpha· 2025-06-19 10:25
Group 1 - The article focuses on the Asia Value & Moat Stocks research service aimed at value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates, particularly targeting investment opportunities in the Hong Kong market [1]
POSCO Boosts Competitiveness With Localized R&D for Critical Minerals
ZACKS· 2025-06-12 15:05
Group 1 - POSCO Holdings has established the Australia Critical Minerals R&D Lab in Perth to enhance technological competitiveness in steel, battery materials, raw materials, and rare earth industries [1][8] - The lab aims to integrate Australia's resources with POSCO's materials technology, adding value to core businesses and serving as a strategic hub for raw material processing and critical mineral acquisition [2][4] - The necessity of localization methods in the steel and battery materials industries has been recognized, focusing on cost-effective raw material procurement and technological competitiveness in carbon reduction [3][4] Group 2 - The R&D lab will focus on critical mineral research and development, including partnerships with local raw material companies and research institutions to advance low-carbon steel raw material utilization and cost-cutting technologies in lithium and nickel sectors [4][8] - Research will also include rare earth supply chains and high-efficiency separation and refining technologies to explore next-generation mineral business opportunities and promote investment in global mines through local knowledge exchange [4][8] Group 3 - Over the past year, shares of POSCO Holdings (PKX) have decreased by 27.7%, slightly underperforming the industry average decline of 27.3% [6]
Is POSCO (PKX) Stock Undervalued Right Now?
ZACKS· 2025-05-28 14:46
Core Viewpoint - The article highlights POSCO (PKX) as a strong value stock, supported by various financial metrics indicating it is currently undervalued in the market [4][8]. Financial Metrics - PKX has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4][3]. - The stock's P/E ratio is 9.84, which is lower than the industry average of 10.40, suggesting it is undervalued [4]. - PKX's PEG ratio stands at 0.27, significantly lower than the industry average of 0.56, indicating favorable earnings growth relative to its price [5]. - The P/S ratio for PKX is 0.26, compared to the industry's average of 0.34, further supporting the notion of undervaluation [6]. - PKX's P/CF ratio is 4.13, much lower than the industry average of 15.79, highlighting its strong cash flow outlook [7]. Investment Outlook - The combination of these metrics suggests that PKX is likely undervalued and stands out as one of the strongest value stocks in the market, particularly given its positive earnings outlook [8].
POSCO Boosts Energy Transportation With Launch of First LNG Carrier
ZACKS· 2025-05-28 13:06
Group 1: Company Expansion and Operations - POSCO is expanding in the energy sector by launching a dedicated LNG carrier to enhance energy transportation stability amid global supply chain uncertainties [1] - The LNG carrier, named 'HL FORTUNA,' was developed through collaboration among POSCO International, HD Hyundai Samho, and H-Line Shipping [2] Group 2: Technical Specifications and Environmental Features - The HL FORTUNA is a 174,000 m³-class LNG carrier, measuring 299 meters in length and 46.4 meters in width, designed for transporting North American LNG [3] - The vessel features a dual-fuel system primarily running on LNG and a high-efficiency re-liquefaction system, ensuring compliance with global environmental standards [3] Group 3: Operational Timeline and Trade Plans - After delivery, the HL FORTUNA will undergo sea trials before entering global LNG trading operations in the second half of the year [4] - Starting in 2026, the vessel will load LNG at Cheniere's terminal in Louisiana, completing a minimum of five round trips annually to POSCO International's Gwangyang LNG terminal [4] Group 4: Stock Performance - In the past year, shares of POSCO (PKX) have declined by 37.4%, compared to the industry's decline of 36.8% [5]
Posco (PKX) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now
ZACKS· 2025-05-26 14:55
Core Viewpoint - Posco's shares have recently declined by 7.8% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - A hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Posco, with a 2.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - Posco currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].
PKX or X: Which Is the Better Value Stock Right Now?
ZACKS· 2025-05-23 16:41
Core Viewpoint - The analysis compares Posco (PKX) and United States Steel (X) to determine which stock represents a better undervalued investment opportunity for investors in the Steel - Producers sector [1]. Valuation Metrics - Posco (PKX) has a forward P/E ratio of 11.10, significantly lower than United States Steel (X) which has a forward P/E of 26.45 [5]. - PKX's PEG ratio is 0.30, indicating a more favorable valuation compared to X's PEG ratio of 1.31 [5]. - PKX's P/B ratio stands at 0.30, while X has a P/B ratio of 0.86, suggesting that PKX is undervalued relative to its book value [6]. - Based on these metrics, PKX holds a Value grade of A, whereas X has a Value grade of C [6]. Earnings Outlook - PKX is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The positive earnings estimate revisions for PKX indicate a stronger potential for earnings growth compared to X, which is rated as Hold [3][7].
POSCO to Inject Capital to Strengthen Battery Material Subsidiaries
ZACKS· 2025-05-16 11:40
Group 1: Investment Overview - POSCO Holdings announced a total investment of KRW 922.6 billion (approximately $660 million) to enhance competitiveness in its rechargeable battery material subsidiaries [1] - The investment includes KRW 525.6 billion for POSCO Future M, KRW 328 billion for POSCO Pilbara Lithium Solution, and KRW 69 billion for POSCO GS Eco Materials [1] Group 2: Strategic Intent - This investment is part of the company's strategy to prepare for significant market expansion following a slowdown in the electric vehicle sector [2] - POSCO Holdings aims to bolster future competitiveness in the battery materials industry and improve financial stability [2] Group 3: Specific Investments - POSCO Holdings plans to acquire the full allocation of new shares in POSCO Future M, corresponding to its 59.7% ownership [3] - The capital increase for POSCO Future M is expected to support ongoing investments to boost production capacity for anode and cathode materials, including a joint plant in Canada [4] - Investments in POSCO Pilbara Lithium Solution and POSCO GS Eco Materials are aimed at sustainable growth in lithium and recycling operations [5] Group 4: Market Performance - In the past year, shares of PKX have lost 39.7%, compared to the industry's decline of 36.5% [7]
Is POSCO (PKX) a Great Value Stock Right Now?
ZACKS· 2025-05-12 14:45
Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly POSCO (PKX) and SSAB (SSAAY), which are currently considered undervalued based on various financial metrics [2][3][8]. Company Analysis POSCO (PKX) - PKX holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [3]. - The PEG ratio for PKX is 0.30, significantly lower than the industry average of 0.57, suggesting it may be undervalued relative to its expected earnings growth [4]. - PKX has a P/S ratio of 0.27, compared to the industry average of 0.35, reinforcing its undervaluation based on revenue [5]. - The P/CF ratio for PKX is 4.40, which is attractive compared to the industry average of 14.50, indicating strong operating cash flow relative to its valuation [6]. SSAB (SSAAY) - SSAAY also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another strong candidate for value investors [7]. - The P/B ratio for SSAAY is 0.90, which is lower than the industry average of 1.42, suggesting it may be undervalued [7]. Industry Insights - Both PKX and SSAAY are positioned within the Steel - Producers industry, which currently presents opportunities for value investors due to the identified undervaluation of these stocks based on key financial metrics [8].