- POSCO management is pursuing an ambitious growth plan that would see the steel operations shrink to around half of total company revenue while generating significant growth from batteries and hydrogen.
- Management also has ambitious plans for steel capacity growth, including possibly entering the U.S. market with electric arc furnace plants.
- Even acknowledging the risks of high capex spending in pursuit of ambitious growth/diversification plans, the shares look oddly undervalued.
For further details see:
POSCO Looks Abnormally Cheap, Even Factoring In The Risks Of Empire-Building And Capacity Growth