[Click eStock] Rising Material Costs Are Overblown... Doosan Bobcat's Strong 3Q Performance

3Q Operating Profit 129.6 Billion KRW... 15.7% Increase YoY
Effective Response to Supply Chain Issues... Steady Demand in Advanced Markets

[Asia Economy Reporter Minwoo Lee] Doosan Bobcat posted better-than-expected strong performance in the third quarter of this year. This is attributed to solid demand in its core markets and effective response to supply chain disruption issues.

On the 1st, Samsung Securities evaluated Doosan Bobcat's third-quarter results as such. Doosan Bobcat recorded consolidated sales of 1.5463 trillion KRW and operating profit of 129.6 billion KRW in the third quarter of this year. These figures represent increases of 41.14% and 15.69%, respectively, compared to the same period last year. Compared to market consensus estimates, they exceeded expectations by 10.77% and 9.99%, respectively. Youngsoo Han, a researcher at Samsung Securities, diagnosed, "Demand in advanced markets remained strong, and the company effectively responded to supply chain disruption issues."

The compact segment also grew in operating profit compared to the same period last year, driven by strong demand, reduced promotional expenses, and price increases. However, the newly acquired industrial vehicles underperformed profitability expectations. Pre-tax profit was affected by foreign exchange losses on foreign currency borrowings raised for the industrial vehicle acquisition.

Against this backdrop, Samsung Securities maintained a "Buy" rating on Doosan Bobcat and lowered the target price by about 8% to 55,000 KRW. Considering the previous trading day's closing price of 38,050 KRW, there is still an estimated upside potential of about 45% from the current stock price. Researcher Han explained, "The recent stock price adjustment due to concerns over rising raw material costs was excessive. The fact that the Chinese market, the only global construction equipment market where demand decline is a concern, has a small share, and that price increases are being sustained based on solid demand in core markets, is also positive."

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