PKX Latest Report

Performance of the Current Report

On December 31, 2024, POSCO (stock code: PKX) had a total operating revenue of RMB1,780.514 billion, a year-on-year decrease of approximately 3.08% from RMB1,866.412 billion on December 31, 2023. This change reflects the challenges the company faces in revenue generation, possibly affected by industry environment, market demand fluctuations, and other factors.

Key Data in the Report

1. The operating revenue in 2024 was RMB1,780.514 billion, a year-on-year decrease of approximately 3.08%.

2. Weakening market demand and the global economic situation may affect steel demand, especially in construction and manufacturing.

3. Intense competition and price wars may lead to a decrease in the company's revenue, despite efforts to control costs.

4. Fluctuations in raw material prices affect production costs and final selling prices, which in turn affect operating revenue.

5. Changes in international trade policies, especially tariffs and quotas, may limit export volumes.

6. The company may adjust production capacity for environmental or strategic reasons, affecting operating revenue.

Peer Comparison

1. Industry-wide analysis: The steel industry as a whole faced a lack of growth in 2024, with many companies experiencing a decline in revenue, mainly due to the slowdown in global economic growth and insufficient demand. Steel demand is expected to be difficult to recover in the short term, putting enterprises under significant sales pressure.

2. Peer evaluation analysis: Compared with other companies in the same industry, POSCO's operating revenue decreased moderately. Some competitors successfully implemented cost control and market expansion strategies, maintaining stable or even growing revenue. POSCO needs to enhance its market adaptability to face increasingly fierce competition.

Summary

POSCO's operating revenue in 2024 decreased, reflecting its vulnerable position in facing weakening market demand and intense competition. The overall industry environment is not optimistic, with the sluggish steel demand and fluctuating raw material prices putting pressure on the company's profitability.

Opportunities

1. Respond actively to national policies, taking advantage of the relaxed macroeconomic environment to gain market share.

2. Optimize production processes and cost control to improve operational efficiency and further enhance profitability.

3. Strengthen cooperation with upstream and downstream enterprises to stabilize the raw material supply chain and reduce the impact of cost fluctuations.

Risks

1. A slowdown in global economic growth may further suppress steel demand and affect sales.

2. Compliance pressure brought by policy changes, especially environmental policies, may lead to additional costs.

3. Significant fluctuations in raw material prices may put pressure on profits if the cost increase cannot be passed on to customers.

4. Intensified competition may lead to price wars, further compressing profit margins.