"Kumho Industrial's Stock This Year Depends on Asiana Sale Performance"

[Asia Economy Reporter Ji-hwan Park] On the 24th, SK Securities analyzed that Kumho Industrial's stock price level this year depends on the sale performance of Asiana Airlines. While the core business is strong, it is expected to be a satisfactory year if the affiliate risks are well resolved. The investment opinion 'Buy' was maintained, and the target price was set at 14,000 KRW.

Shin Seo-jeong, a researcher at SK Securities, explained, "Kumho Industrial's first-quarter results recorded sales of 357 billion KRW and operating profit of 16.6 billion KRW. In particular, the cost ratio improved across housing, civil engineering, and overseas sectors, increasing operating profit margin. Considering the continuous increase in housing unit sales and the airport corporation entering its main track from July, the possibility of achieving the guidance set at the beginning of the year is viewed positively."

The civil engineering sector improved by 2 percentage points to 95% compared to the same period last year, and the overseas sector improved by 9 percentage points to 97%. Especially in the housing sector, it is analyzed that the contribution to sales and profits will gradually increase due to the continuous rise in the number of housing units sold.

Researcher Shin Seo-jeong evaluated, "This year's sales guidance is 5,801 units, exceeding last year's 5,256 units," and added, "Contrary to market concerns, the housing market is progressing steadily." Despite various variables, the housing order target of 830 billion KRW set at the beginning of the year appears highly achievable.

Kumho Industrial's stock price level this year is expected to be keyed on the smooth sale of Asiana Airlines. It is explained that the stock price depends more on how smoothly the sale of Asiana Airlines is completed than on the core business.

Researcher Shin emphasized, "Although there are many rumors in the market, if the sale of Asiana Airlines is successfully completed as planned, it will be a year to resolve the affiliate risks that have suppressed the stock price so far and to highlight construction capabilities." However, he added that if noise related to the sale continues, a significant stock price adjustment will be necessary.

This content was produced with the assistance of AI translation services.