HSBC Shared It’s Analysis On Kardemir And Erdemir

HSBC shared it’s analysis on Kardemir and Erdemir. HSBC predicted operational profitability in both Erdemir and Kardemir in 2021.

HSBC made positive evaluations in its analysis for the Turkish iron and steel industry. In HSBC's assessment, it was pointed out that while the rally in global steel prices continues, infrastructure spending, strong demand in the automobile and manufacturing sector supported the price increases. HSBC predicted that the supply problem will continue to increase prices due to operational problems, high freight prices, and unfavorable weather conditions. HSBC stated that infrastructure projects from European countries and China's reduction in production to control emissions will also support the keeping prices strong, but there may be an improvement in prices in the second half of the year.

Target Rises in Kardemir and Erdemir

According to HSBC's assessment, Erdemir and Kardemir anticipate historic high levels in both operational profitability and net profit in 2021. In 2021, the institution estimated EBITDA per ton will be 330 dollars with an annual increase of 195 percent on the Erdemir side, and 205 dollars per ton with an annual increase of 177 percent in Kardemir. Following the said analysis, HSBC increased its target price for Erdemir from 19.50 TL to 22 TL. The estimated dividend yield for the company in 2021 is estimated to be around 18 percent. For Kardemir, the institution increased its target price from 8.80 TL to 10 TL.