[Click eStock] "BH, 2Q Earnings Surprise... Target Price Up"

Hana Securities raised the target price for BH from the previous 31,000 KRW to 35,000 KRW on the 2nd, citing a bright profit outlook for this year following a Q2 earnings surprise. The investment rating was maintained as 'Buy.'

Previously, BH recorded sales of 468.5 billion KRW in Q2, a 53% increase compared to the same period last year, and operating profit of 31.3 billion KRW, up 223%.

Researcher Kim Rok-ho said, "This is an excellent performance that significantly exceeded the recently upwardly revised consensus," adding, "Sales to North American clients and domestic customers both set record highs for Q2."

Kim forecasted, "Q3 sales are expected to increase by 23% year-on-year to 561.1 billion KRW, and operating profit to rise by 22% to 62.1 billion KRW," predicting that "both sales and operating profit will set new records for Q3 following Q2."

He explained, "The achievement of maximum sales is partly due to the acquisition effect of BH EVS (wireless charging modules for vehicles), but sales to the core North American customers are also being renewed," adding, "Although early mass production occurred in Q2, supply will be in full swing from Q3, likely exceeding the previous record sales of Q2 2022."

Accordingly, earnings per share (EPS) for 2024 and 2025 were also revised upward along with the target price.

Researcher Kim added, "We are raising the EPS for 2024 and 2025 by 19% and 4%, respectively, compared to previous estimates," and noted, "Despite the company's record-breaking performance and structural improvements, the 12-month forward price-to-earnings ratio (PER) is only 5.95 times, which we consider an extremely undervalued area."

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