[Click eStock] "Hizeu Hangong, Clear Improvement in Performance... Annual Operating Profit Expected to Turn Positive"

[Asia Economy Reporter Park Jihwan] Yuanta Securities evaluated on the 23rd that new orders and delivery volumes for Haizeu Hangong are continuously increasing.

Researcher An Juwon of Yuanta Securities stated, "In Q2 this year, Haizeu Hangong's sales reached 13.8 billion KRW, a 47.1% increase compared to the previous year, while operating losses of 3.9 billion KRW continued." Sales of aircraft parts increased due to higher delivery volumes following Q1. The fashion sector also led external growth with a 361% increase compared to the same period last year. Researcher An forecasted, "More important than short-term performance are trends in new orders and cumulative delivery amounts. The cumulative delivery amount in Q2 steadily rose to 306.5 billion KRW, and new orders continue to occur, indicating that future aircraft parts performance is expected to improve further." Especially, as major domestic airlines are expected to increase orders for fuel-efficient medium and small-sized aircraft, Haizeu Hangong is anticipated to benefit as well.

Haizeu Hangong has established a total solution covering the entire process from parts assembly for aircraft parts manufacturing to machining, sheet metal forming, and surface treatment. Researcher An explained, "Based on production technology, they can secure various domestic and international clients," adding, "Their portfolio diversification is well established."

The export ratio, which had decreased due to COVID-19, rose to 36% in the first half of this year, and overseas sales are expected to increase further. He emphasized, "Since factories operate differently by region for each part, systematic and efficient production is possible, providing sufficient business competitiveness."

Annual performance is expected to turn profitable with sales of 79.5 billion KRW, a 50.2% increase from the previous year, and operating profit of 900 million KRW. New sales from Deck Hangong, acquired in July, and increased sales in the fashion sector, along with the fashion sector maintaining quarterly average sales in the 10 billion KRW range in the second half, suggest a better performance trend in the latter half of the year. Along with this, the decision to dispose of Haizeu Asset Management shares to improve business efficiency is expected to further enhance competitiveness in the aircraft parts business.

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