[Click eStock] "Taekwang, Positive Performance... Outlook Uncertain"

[Asia Economy Reporter Park Jihwan] Daishin Securities evaluated Taekwang on the 17th, stating that considering the trend of order intake and performance improvement, future performance is positive but the outlook remains uncertain. Accordingly, the investment opinion 'Buy' was maintained, and the target price was lowered by 9.1% from the previous 11,000 KRW to 10,000 KRW.

Researcher Dongheon Lee of Daishin Securities stated, "Taekwang's Q2 performance is expected to show sales of 58.1 billion KRW, a 19.1% increase year-on-year, and operating profit of 2.9 billion KRW, a 0.8% decrease," adding that the sales improvement is due to the full-scale sales of new orders increased by 124.2 billion KRW last year and the normalization of some production delays in Q1. Operating profit experienced a leverage effect from increased sales, but was affected by a high carbon mix and a slight exchange rate decline in Q2.

Researcher Lee explained, "Q2 new orders are estimated to have increased by 25.5% year-on-year to 64 billion KRW, showing strong performance," and added, "The US share, which is suffering from shale production cuts compared to competitors, is low, and projects delayed due to COVID-19 were temporarily reflected."

He diagnosed, "Since April, the gradual improvement in oil prices and economic reopening movements are positive," but noted that "the impact of COVID-19 continues in major downstream industries, and the timing of a significant increase in plant project orders is being delayed."

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