[Click eStock] "Hyundai Electric, Order Increase... Earnings Improvement Expected Next Year" Target Price Up 10%

[Asia Economy Reporter Ji Yeon-jin] Hana Securities announced on the 1st that it expects Hyundai Electric's performance to continue improving through next year due to a rapid increase in orders driven by favorable industry conditions, and raised the target stock price by 10% to 33,000 KRW.

Hyundai Electric recorded sales of 540.1 billion KRW in the second quarter, a 27.5% increase compared to the same period last year, and operating profit of 27.2 billion KRW, a 2.6% increase year-on-year. Power equipment sales increased by 31.0% year-on-year as orders from the Middle East translated into revenue. Despite a decrease in sales to Korea Electric Power Corporation (KEPCO), power equipment maintained profitability, while rotating and distribution equipment showed slightly weaker profitability due to revenue recognition from KEPCO-related grid stabilization ESS orders. Overseas subsidiaries performed well in the U.S. but were somewhat sluggish in China.

Researcher Yoo Jae-sun of Hana Securities emphasized, "Future performance will be proven by the steadily increasing order backlog," adding, "In the second quarter, orders from the Middle East amounted to 127 million USD and ship-related products to 131 million USD, already exceeding last year's total orders in the first half."

Researcher Yoo added, "The weak sales trend to domestic KEPCO affiliates is expected to normalize from the second half, and sales growth in the Middle East and U.S. markets is expected to continue. Rotating and distribution equipment are recovering with ship-related product sales. Overseas subsidiaries show positive signs with strong sales maintained by the U.S. production subsidiary alongside a significant increase in orders."

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