[Click eStock] "Hankook Tire & Tech Achieves Double-Digit Profit Margin This Year"

Hankook Tire & Technology is expected to achieve a double-digit operating profit margin this year, driven by the growth of its electric vehicle (EV) dedicated tire brand.

Yoo Min-ki, an analyst at Sangsangin Securities, stated on the 4th, "The North American EV market growth rate is expected to exceed 30% this year," adding, "The proportion of EV-fitted products in original equipment (OE) tire sales is expected to increase to 20%." He also noted, "The share of high-inch tires is approaching 50%," and evaluated that "last year, the global OE tire sales volume for SUVs already exceeded 50%."

Analyst Yoo said, "The replacement tire (RE) market for electric vehicles is also expanding," and explained, "The operating profit margin from RE sales is in the mid-teens percentage range, which is about three times that of OE operating profit margins." He added, "Anti-dumping tariffs in North America have also decreased by 6.3%, resulting in cost reimbursements." He continued, "The fourth plant in Tennessee, USA, is currently being expanded and will begin operations in 2026," forecasting "steady mid- to long-term profit growth."

He predicted, "The North American EV market growth rate is expected to exceed 30%, and the EV share of OE sales will also increase to 25%," concluding that "Hankook Tire & Technology will be the biggest beneficiary of EV market growth in the mid- to long-term." He gave a 'Buy' rating on Hankook Tire & Technology and set a target price of 80,000 KRW.

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