[Click eStock] "Hyundai Electric Shows Clear Earnings Improvement"
[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating on Hyundai Electric on the 4th, citing a clear improvement in performance, and raised the target price by 23.1% from the previous 13,000 KRW to 16,000 KRW.
Researcher Dongheon Lee of Daishin Securities analyzed, "The sales in the second quarter reached 535.5 billion KRW, a 32% increase compared to the previous year, and operating profit successfully turned positive during the same period." This represents an earnings surprise with sales exceeding market expectations by 28% and operating profit by 245%.
Researcher Lee explained, "The increase in sales was due to higher sales to KEPCO affiliates, North America and Europe, premium customers' distribution panels, and ESS," adding, "Regarding operating profit, the completion of restructuring, depletion of low-priced orders, mix improvement, and strong performance of overseas subsidiaries had a significant impact."
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The outlook for Hyundai Electric's third-quarter performance is also positive. Researcher Lee evaluated, "The performance improvement trend of the US and China subsidiaries continues, and the recovery of KEPCO orders is also evident," stating, "Even considering some advance reflection of third-quarter volume and seasonality, the third-quarter performance is positive."
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