[Click eStock] "HD Hyundai Electric, Target Price Up on Profitability Improvement"

NH Investment & Securities announced on the 8th that it estimates HD Hyundai Electric's fourth-quarter earnings last year slightly exceeded market expectations and raised the target stock price from 410,000 KRW to 500,000 KRW.

Researcher Minjae Lee of NH Investment & Securities estimated that HD Hyundai Electric achieved consolidated sales of 987.1 billion KRW and operating profit of 217.2 billion KRW in the fourth quarter of last year. This represents an increase of 24% and 74%, respectively, compared to the same period last year. The market expectations were sales of 985 billion KRW and operating profit of 216 billion KRW.

Researcher Lee predicted, "Due to the replacement cycle of power infrastructure, expansion of data centers, and reshoring of manufacturing (relocation of overseas production facilities to domestic), power demand in the United States will increase."

He added, "This is a benefit commonly enjoyed by domestic and international power equipment companies, including HD Hyundai Electric."

Researcher Lee analyzed, "Although HD Hyundai Electric's EBITDA margin is still lower than the 25% of competitors, considering the rise in the KRW-USD exchange rate and the completion of investment in extra-high voltage (EHV) transformers, there is sufficient potential for further profit margin improvement." He also expressed expectations that "both scale growth and profit improvement will appear simultaneously in power equipment below EHV voltage."

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