POSCO HOLDINGS INC. American Depositary Shares (Each representing 1/4th of a share of Common Stock) (PKX) fair value

ACCE thesis

POSCO Holdings makes flat-rolled steel for automotive, appliance and construction customers, and its Korean mills supply a large share of the country's carbon steel, with a growing secondary-battery materials business (cathode and anode material, lithium) layered on top. The structural case rests on its integrated Korean steelmaking base and the high-grade automotive and electrical steel it sells into EV and hybrid supply chains. The near-term story is margin repair: revenue is growing 9.7%, but the 4.3% operating margin and 2.2% ROE show that little of that growth is reaching shareholders yet. At 9.7x forward earnings against 17.8x trailing, the market is pricing in a meaningful earnings recovery, so the question for the portfolio manager is whether the battery and steel mix shift can lift margins back toward levels that justify that rerating. The name is not in any index we track, and the 57/100 score reflects thin profitability, so it merits a deeper look only if the margin recovery thesis holds up under review.