[Featured Stock] Kolon Industries Falls Over 7% on Target Price Downgrade 전망

[Asia Economy Reporter Hwang Yoon-joo] Kolon Industries is showing a decline of over 7% in the early trading session following securities firms' downward revisions of target stock prices.

As of 9:32 AM on the 28th, Kolon Industries is trading at 57,300 KRW, down 7.13% compared to the previous trading day.

It is interpreted that the downward revision of target prices by Shin Young Securities, KB Securities, Yuanta Securities, and others, citing expected stagnation in first-half performance, has influenced this trend.

Baek Young-chan, a researcher at KB Securities, stated, "The top line for Q1 this year is expected to increase by 10.9% year-on-year to 1.2098 trillion KRW, but operating profit is forecasted to decrease by 8.6% to 63.2 billion KRW," adding, "Although sales price increases will boost revenue, the continued burden of freight costs will cause a slight decline in profits compared to last year."

Hwang Kyu-won, a researcher at Yuanta Securities, analyzed, "Attention is needed for two risks," and explained, "Freight rate pressure for export ships will continue until the first half of the year, making profit decline inevitable due to increased export costs for tire cords, petroleum resins, films, and others."

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