[Click eStock] "Hwashin, 2Q Earnings Forecast Raised... Target Price Up"

Daol Investment & Securities announced on the 14th that it is raising the earnings outlook for Hwashin and is upgrading the target stock price from 15,000 KRW to 18,000 KRW. The investment rating was maintained at 'Buy.'

Researchers Yoo Ji-woong and Kang Min-jung stated, "It is a phase where an upward revision of the Q2 earnings outlook is necessary," adding, "A mixed trend has begun to appear in the overseas operations of finished car manufacturers in the US, India, and China, which we interpret as the early stage of re-rating for small and medium-sized auto parts stocks."

In particular, they forecast that the operating profit for Q2 will reach an all-time high. The Q2 operating profit is expected to increase by 9.2% year-on-year to 30.2 billion KRW.

The two researchers also added, "We are revising the annual net profit upward by 15%, from the existing 72.6 billion KRW to 83.9 billion KRW, and operating profit is expected to increase by 25.3% year-on-year to 104.9 billion KRW."

They further noted, "In the second half of the year, the Yeongcheon BPC (Battery Pack Case) plant will begin operations, leading external growth by responding to Hyundai Motor's Casper and Kia EV3 volumes," and added, "Compared to last year's concentrated EV production cuts in July and August and the nationwide union strikes, a stable second half can be expected."

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