[Click eStock] "Hankook Tire & Technology, Market Boom Expected in Second Half... Target Price Up 27%"

[Asia Economy Reporter Ji-hwan Park] Ebest Investment & Securities maintained a 'Buy' rating on Hankook Tire & Technology on the 29th, stating that the tire market will continue to boom in the second half of the year, and raised the target price by 27.3% from the previous 55,000 KRW to 70,000 KRW.

Researcher Woo-ung Yoo of Ebest Investment & Securities said, "Since the beginning of the year, car buyers have been increasing purchases of used internal combustion engine vehicles before buying electric vehicles, clearly indicating a boom in the used car market," adding, "In this process, replacement tires (RE tires), which can generate high-profit sales, are expected to benefit, and a structural increase in corporate value of tire companies is anticipated." This is because new car production by automobile manufacturers continues to fall short of demand, structurally increasing RE tire demand.

Researcher Yoo emphasized, "The significantly higher volume of used car transactions compared to the used car price trend explains the recovery in RE tire demand," and "Especially, the emergence of online used car sales companies supports the phenomenon of a surge in used car transaction volume."

The US anti-dumping issue, which had been a fundamental damaging factor since last year, has been somewhat resolved. Researcher Yoo said, "In the final ruling by the US Department of Commerce in May, the preliminary anti-dumping tariff of 38% was reduced to 27%, marking a conclusion," and "The ITC's final decision is scheduled for July, so from the third quarter, the adjusted tariff will take effect."

The profit and loss reflection of the tariff has already been applied since February with the preliminary tariff. After the ITC's final ruling, the finalized tariff rate will be applied, and efforts to dilute this through origin transfer will be actively pursued, expected to secure relatively higher profit momentum compared to major domestic competitors.

Researcher Yoo emphasized, "Along with the continued boom in RE tire demand in the second half, momentum is concentrated on the resolution of anti-dumping adversity, continuous tire price increases, and the possibility of Hanon Systems' stake sale," adding, "An upward trend in valuation is expected."

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