Hyundai Steel, KR7004020004

Hyundai Steel stock: Hanwha keeps 43,000-won target

Published on 10/30/2026 at 01:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hanwha kept its Buy rating on Hyundai Steel stock as seasonal volume weakness weighed on the third quarter. The broker still sees recovery ahead.

Profit recovery remains the focus

Hanwha kept its Buy rating while citing a seasonal decline in sales volume during the third quarter.
The analyst expects lower electricity costs and stronger volumes to support Hyundai Steel's earnings recovery in 2027.
Price increases and competition from imported steel remain important risks for the outlook.

Hyundai Steel, KR7004020004, Illustration mit AI erstellt.

Hanwha Investment & Securities maintained its Buy rating and a 43,000-won target for Hyundai Steel, according to a report published by Edaily on October 6, 2026. The analysis focused on weaker third-quarter volumes and a possible recovery in the following quarter.

Seasonal volume weakness affects estimates

Hanwha analyst Kwon Ji-woo projected consolidated third-quarter revenue of 5.638 trillion won and operating profit of 64.9 billion won. The operating-profit estimate was 44.1 percent below the cited market consensus of 116 billion won.

The report attributed the weakness mainly to lower sales volumes. The Chuseok holiday coincided with the construction off-season, while standalone volume was estimated to have declined by about 10 percent from the second quarter. Domestic rebar sales in July were also reported to be 18 percent below the second-quarter monthly average.

Recovery depends on prices and costs

Hanwha forecast fourth-quarter operating profit of 130.1 billion won. The expected improvement was linked to the fading seasonal effect, recovering volumes and the fuller impact of price increases for automotive steel sheets and shipbuilding plates.

The analyst also pointed to lower electricity rates as a potential driver of earnings recovery in 2027. At the same time, the outlook remains sensitive to whether customers accept higher prices. Edaily reported that distribution prices for hot-rolled coil and plate fell by 1 percent in the first week of October, while September hot-rolled coil imports rose 50 percent year over year.

These factors leave Hyundai Steel's recovery dependent on both demand normalization and margin discipline rather than on a single cost measure. The published estimates are analyst forecasts, not reported company results.