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HD Hyundai Group (HD Hyundai Group) |
[Alpha Biz= Reporter Kim Minyoung] Daishin Securities Raises Target Price for HD Hyundai to 100,000 KRW, Expects Improved Profitability in H2.
On the 18th, Daishin Securities raised the target price for HD Hyundai (267250) from 90,000 KRW to 100,000 KRW, an 11% increase, while maintaining a 'Buy' rating, citing anticipated profitability improvements in the second half of the year.
Daishin Securities analyzed, "HD Hyundai's consolidated Q2 sales this year are expected to be 16.2741 trillion KRW, a 4.2% increase year-on-year, and operating profit is expected to be 736.6 billion KRW, a 55.9% increase year-on-year, but below our previous estimate of 902.0 billion KRW in operating profit."
The firm explained, "The underperformance of Hyundai Oilbank is the reason for this shortfall, attributed to inventory valuation losses due to falling oil prices and decreased refining margins from a drop in gasoline crack spreads."
However, Daishin Securities anticipated a robust performance from the shipbuilding, marine solutions, and electric sectors, predicting, "Especially from the second half, the shipbuilding sector's profitability is expected to improve significantly due to the increased sales of vessels ordered at high prices."
The firm also noted, "With the market's growing interest in marine solutions due to the enforcement of environmental regulations, HD Hyundai's stock is expected to exhibit a positive trend. The target price for HD Hyundai has been raised, also reflecting the increased equity value from the stock price fluctuations of its subsidiaries
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
