Posco International Shares Rally on New Contract With Hyundai Motor

By Kwanwoo Jun

Posco International's shares rose Thursday after the company secured a new contract to supply electric-vehicle components to Hyundai Motor.

Shares of the South Korean trading arm of steelmaker Posco Holdings rose as much as 19% to 39,550 won ($30.22) in morning trade, on course for their sharpest daily percentage gain in almost two months. The benchmark Kospi was last 0.6% lower.

Posco International said in a regulatory filing early Thursday that its affiliate, Posco Mobility Solution, would supply 2.5 million driving motor cores for Hyundai Motor EVs from 2025 to 2034, the latest of a series of deals with the largest automaker in South Korea. The contract value wasn't disclosed.

The deal will raise the total number of driving motor cores, which form a power-generating component for Hyundai Motor EVs, to 6.85 million, Posco International said in a separate statement.

Posco International aims to increase its annual production capacity for driving motor cores to more than seven million globally by 2030, with new production facilities in China, Mexico and Poland either being built or set to begin operation this year, the statement said.

Kiwoom Securities analyst J.H. Lee said in a research note on Wednesday that he expects Posco International to post above-consensus earnings for the second quarter of 2023. He raised his target price for the company by 21% to KRW40,000.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

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(END) Dow Jones Newswires

June 08, 2023 01:37 ET (05:37 GMT)

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