[Weekly securities recommended stocks, oil hits] · S-Oil · POSCO, Dongbu

[Korea goyounghun financial newspaper reporter]

◇ POSCO

-2017, China's steel industry supply reform (reduced excess capacity) is expected to strengthen over the previous year.

- Cost burden of the main raw material prices that began in the second half of last year, is expected to be offset by product price increases in 2017.

-2017 In the steel sector (a separate, foreign subsidiaries) and the E & C sector is expected to be earnings improvement (POSCO E & C, etc.) stands out.

◇ S-Oil

-2016 To 2020, the region refined products forecasts, refining margins expanded from last year's $ 6 $ 8 2018 lines as demand increases.

-2017 In early expectations PX PX spread kkeutnamyeonseo expansion cycle in 2016 recovered to around 350% to 400% in 2018 and 2019 450% level.

-2018 Until the first half year will progress investment PP (polypropylene) · PO (propylene oxide). Annual sales of 2.6 trillion won, operating profit of 770.5 billion won, 509.8 billion won net profit expected added upon completion.

◇ Dongbu

- View the relatively strong demand for high-margin PMIC (power semiconductors) earnings growth traction.

- Transfer price can be determined in accordance with the main raw material prices despite tight global silicon wafer 8 inches Foundry (Foundry) supply.

- Interest expense largely mitigated by continued debt repayment.



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