[ANALYST REPORT] POSCO: Separate earnings solid, but consolidated results to disappoint

Consolidated OP of W676bn, 10.7% below consensus We believe separate 2Q16 OP of W652bn (+12% QoQ, +7.3% YoY) will miss our previous estimate by 9.3% and consensus by 3%. Due to expansion work at theGwangyang #5 blast furnace (from 3,950 cubic meters to 5,500 cubic meters), 2Q16 shipments should reach only 8.76mn tonnes; shy of our previous estimate of 8.96mn tonnes and the biggest reason for the lower OP outlook. Meanwhile, consolidated OP should reach W676bn (+2.5% QoQ, -1.5% YoY), 16.3% below

July 5, 2016

S. Korean stocks Asia’s 2nd top for foreign investors in H1

[THE INVESTOR] South Korean stocks were the second top pick for foreign investors in Asia, after Taiwanese shares, in the first half of this year, according to the Korea Exchange on July 4. In the January-June period, foreigners bought a net US$6.25 billion worth of Taiwanese stocks, followed by the purchases of Korean stocks and Indian shares worth $3.42 billion and $2.74 billion, respectively. In 2015, foreign investors broke their net buying streak in Asia for the first time in three years. I

July 4, 2016