POSCO Holdings, due to strong performance in non-steel businesses, has raised its target stock price to 550k Korean won.

Hanwha Securities stated on the 4th that POSCO Holdings’ performance in the first quarter of this year significantly exceeded market expectations, and has raised its target stock price from the original 490k won to 550k won. Analysts believe that although the profitability of the steel main business remains weak, the improvement in performance of infrastructure, overseas steel, and secondary battery material subsidiaries has driven the overall consolidated performance higher.

According to Hanwha Securities analyst Kwon Ji-woo, POSCO Holdings’ consolidated baseline operating profit for the first quarter was 7.07 trillion won, up 24.5% year-on-year. This level exceeded market consensus (the average expectation of the securities industry) by 20%. The market had been cautious due to the slowdown in the steel industry and increased cost burdens, but actual results reflected a faster-than-expected recovery in non-steel sectors.

Specifically, in the infrastructure sector, POSCO E&C successfully turned a profit in the first quarter of 2026 after incurring large losses in the fourth quarter of 2025. The secondary battery materials division also saw a significant narrowing of losses compared to the previous quarter. In contrast, POSCO’s standalone baseline steel performance was poor. This was due to the simultaneous rise in exchange rates, liquefied natural gas, and raw material prices, which increased cost burdens. Steel companies are more sensitive to changes in raw material and energy costs, and analysts believe that such cost pressures directly impacted profitability this quarter.

However, the securities industry is also paying attention to the possibility of a recovery in the steel sector. The steel product price increases implemented between February and March are expected to be reflected in ASP (average selling price) starting from the second quarter. Especially for product groups like hot-rolled steel plates and thick plates, which are widely used in industrial materials, if prices normalize, profit margins—i.e., the profit space from product sales—are also expected to gradually improve. This means that even if short-term performance is weak, the core business’s resilience will gradually strengthen into the second half of the year.

Hanwha Securities forecasts that POSCO Holdings’ consolidated operating profit this year will reach 3.119 trillion won, a 70% increase from 1.827 trillion won last year. In particular, the lithium business is considered a key variable driving a reassessment of the company’s value. As demand for electric vehicles and energy storage devices expands, the global supply and demand situation for lithium is improving, and the possibility of lithium prices entering an upward cycle is increasing. This trend is expected to boost the valuation of POSCO Holdings’ secondary battery materials business, and in the future, the recovery of the steel main business and growth of new businesses will become the core drivers influencing the stock price simultaneously.