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]

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]

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]

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]

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].

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].

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]

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].

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].

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]