Core Insights - POSCO INTERNATIONAL has signed a memorandum of understanding with Ulaanbaatar, Mongolia, to implement a sewage heat supply project aimed at providing district heating to residential areas [1][8] - The project is set to undergo a feasibility study until the first half of 2026, with full-scale implementation planned under a 15-year Build-Operate-Transfer model if deemed viable [2][8] - This initiative is crucial for addressing severe air pollution in Ulaanbaatar, particularly during winter, by reducing greenhouse gas emissions and fine dust through the recycling of waste heat [3][4] Project Details - The system will target heating approximately 4,000 households in a newly constructed residential complex [2][8] - POSCO INTERNATIONAL has prior experience in sewage heat-based district heating, having successfully implemented a similar project in Seoul, which supplies heat to 20,000 households and significantly reduces carbon emissions [4] Strategic Importance - The Ulaanbaatar city government views this partnership as a means to combat pollution, enhance quality of life, and support sustainable urban development [5] - This MOU underscores POSCO's commitment to sustainable heating technologies and its ambition to expand operations beyond Mongolia into other Central Asian regions [5] Market Performance - PKX's shares have experienced a decline of 27.9% over the past year, compared to an 18.5% decline in the industry [5]

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Group 1 - American Resources Corporation's portfolio company, ReElement Technologies, has signed a memorandum of understanding with POSCO International Corporation [1] - The agreement aims to strengthen the rare-earth supply chain in the United States [1] - The collaboration will explore the establishment of an integrated rare-earth and permanent-magnet production complex [1]

Company Overview - POSCO Holdings is a South Korean company primarily engaged in the production of steel products and is the world's 7th largest steelmaker [1] - The company operates through four business divisions: Steel Sector, Infrastructure, Energy Materials, and Others [1] Analyst Insights - The analysis focuses on fixed income and commodities, with occasional stock picking [1] - The investment horizon is typically medium to long-term, while also paying attention to short-term price movements [1] - The analysis is value-driven and contrarian, targeting mispriced assets [1]

Company Overview - POSCO Holdings is a South Korean company primarily engaged in the production of steel products and is the world's 7th largest steelmaker [1] - The company operates through four business divisions: Steel Sector, Infrastructure, Energy Materials, and Others [1] Analyst Focus - The analysis specializes in fixed income and commodities, with occasional stock picking [1] - The investment horizon is typically medium to long-term, while also paying attention to short-term price movements [1] - The analysis is value-driven and contrarian, focusing on mispriced assets [1]

Core Viewpoint - Posco (PKX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates as a key determinant of stock price movements, with empirical evidence showing a strong correlation between earnings estimate revisions and near-term stock price changes [4][6]. - Institutional investors often react to changes in earnings estimates, leading to significant buying or selling activity that impacts stock prices [4]. Posco's Earnings Outlook - For the fiscal year ending December 2025, Posco is expected to earn $3.96 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.9% over the past three months, reflecting a positive trend in earnings estimates [8][5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating substantial returns, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Posco's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term due to favorable earnings estimate revisions [10][9].

Core Viewpoint - Glenfarne's Alaska LNG unit has signed a preliminary agreement to supply 1 million tonnes per annum (mtpa) of LNG to South Korean trading firm POSCO International for a duration of 20 years [1] Company Summary - The agreement marks a significant long-term supply commitment in the LNG market, indicating strong demand from South Korea [1] - The deal is expected to enhance Glenfarne's position in the global LNG supply chain [1] Industry Summary - The LNG market continues to see robust growth, driven by increasing energy demands in Asia, particularly in South Korea [1] - Long-term contracts like the one signed by Glenfarne are becoming more common as companies seek to secure stable supply amidst fluctuating market conditions [1]

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets 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, specifically concentrating on investment opportunities in the Hong Kong market [1]

Financial Performance - Consolidated revenue for 2024 is projected at KRW 72,688,143 million, a decrease of 5.6% from KRW 77,127,197 million in 2023[5] - Consolidated operating income for 2024 is expected to be KRW 2,173,573 million, down 38.4% from KRW 3,531,423 million in the previous year[5] - Consolidated net income for 2024 is forecasted at KRW 947,580 million, a decline of 48.7% compared to KRW 1,845,850 million in 2023[5] - Total assets increased to KRW 103,404,199 million in 2024, up from KRW 100,945,394 million in 2023, reflecting a growth of 2.4%[5] Corporate Governance - The company maintains a 100% compliance rate with key corporate governance indicators[6] - The Board of Directors consists of 10 members, with 6 being outside directors, ensuring independent oversight[16] - In 2024, the Board held 10 meetings and its Special Committees convened 29 times to support decision-making on key management issues[18] - The company has adopted a new governance framework to enhance transparency in CEO succession processes, approved in December 2023[7] Shareholder Engagement - POSCO Holdings has provided e-voting at all regular AGMs since March 2019, facilitating shareholder participation[7] - The company held two AGMs during the reporting period, with full compliance in notifying shareholders through multiple channels including KRX and SEC systems[23] - The company has committed to providing shareholders with sufficient information 28 days in advance of AGMs[27] - The company has encouraged proxy voting and conducted AGMs outside peak dates to enhance shareholder convenience[29] Shareholder Returns - A new three-year shareholder return policy was announced, targeting a basic dividend of KRW 10,000 per share, funded by 50-60% of annual free cash flow[53] - The company paid cash dividends totaling KRW 2.82 trillion during the mid-term dividend policy period (2020-2022), achieving a consolidated dividend payout ratio of 24.8%[52] - In July 2024, the company announced a share buyback policy to repurchase and cancel 6% of outstanding shares over three years, along with a KRW 100 billion treasury share purchase[55] - Cash dividends for 2024 are set at KRW 757.5 billion, with a payout ratio of 69.2%[74] Investor Relations - The company has enhanced communication with shareholders through various channels, including a YouTube channel for retail investors, featuring 199 videos and 31 million views as of May 2025[94] - The company has implemented a system for investors to request IR meetings and actively engages in various IR activities to reflect investor interests[92] - The company will hold a conference call on January 31, 2024, to release its 2023 earnings and conduct a Q&A session with institutional investors and analysts[96] - The company has established a dedicated IR team to handle inquiries from foreign shareholders, ensuring effective communication and support[102] Risk Management - The company has a risk management system in place to monitor and respond to risks, reporting results to the Board of Directors[177] - The company has established a comprehensive risk management policy, integrating business risks related to management strategy, new business development, global M&A, and ESG into a single function within the Management Strategy Office[181] - The internal accounting management system has been in place since early 2001 and is subject to annual audits by external auditors, ensuring compliance with the Sarbanes-Oxley Act[187] - The company conducts quarterly reviews of its consolidated financial statements and internal accounting management system to strengthen financial risk controls[179] Leadership and Management - The CEO and Representative Director, Chang In Hwa, has served for 14 months and is set to continue until March 21, 2027[200] - Lee Ju Tae, Head of Corporate Strategy Division, has a term of 2 months remaining until March 20, 2026[200] - The Corporate Strategy Division is expected to play a crucial role in future business planning and investment strategies[200] - The company is committed to strategic planning and investment to drive future growth[200]

Group 1 - POSCO Future M has signed a memorandum of understanding with CNGR and FINO to expand its precursor production agreement into the lithium-iron-phosphate (LFP) cathode material business, focusing on constructing LFP production facilities and promoting their use in Energy Storage Systems (ESS) [1][7] - The global ESS market is predominantly composed of LFP batteries, which accounted for 80% of the market in 2023, due to their cost-effectiveness and longer lifespan compared to ternary batteries like nickel-cobalt-manganese (NCM) [2][7] - POSCO is diversifying its product portfolio beyond high-nickel NCMA and NCA batteries, developing lithium-manganese-rich (LMR) materials for entry-level electric vehicles (EVs) and conducting R&D on high-density LFP cathode materials to enhance energy performance and supply-chain competitiveness [3][7] Group 2 - PKX stock has experienced a decline of 14.3% over the past year, which is slightly better than the industry's decline of 17.4% [5] - PKX currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the Basic Materials sector [6]