[Click eStock] "Kumho Petrochemical Q3 Operating Profit Exceeds Market Expectations... Target Price Up 25%"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating on Kumho Petrochemical on the 9th, stating that its Q3 earnings this year significantly exceeded market expectations, and raised the target price by 25% from the previous 140,000 KRW to 175,000 KRW.

Researcher Hansangwon of Daishin Securities said, "Benefiting from the COVID-19 pandemic, the strong market conditions for NB-Latex (raw material for disposable gloves) are expected to continue as capacity expansion is sustained, maintaining its global No.1 position with a market share of about 30%."

In particular, Q3 operating profit recorded 213.8 billion KRW, a 78% increase from the previous quarter, significantly surpassing the heightened market expectation of 167.6 billion KRW, marking an excellent performance.

Researcher Hansangwon analyzed, "Overall, the core business divisions demonstrated higher-than-expected profitability, especially the phenol derivatives segment saw a substantial profit increase due to the sharp rise in spot prices of major products in June being reflected in actual selling prices with a lag."

He stated, "The operating profit margin of synthetic rubber recorded 21%, thanks to the continued strong market conditions for NB-Latex, recovery in sales volume of general-purpose rubber due to improved tire demand, and a positive lagging effect from BD price increases."

Researcher Han also forecasted, "In the case of synthetic resins, favorable performance is expected to continue due to increased sales volume and improved profitability of the main product ABS (appliance/IT materials)."

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