[Market Focus] "Profit Improvement Trend in the Spotlight"... HD Hyundai Electric Rises Over 5%

Shares of HD Hyundai Electric are on the rise after confirming improved earnings in the second quarter of this year.

As of 9:08 a.m. on July 23, HD Hyundai Electric was trading at 492,000 won, up 24,000 won (5.13%) from the previous trading day.

Mirae Asset Securities raised its target price for HD Hyundai Electric by 29% to 580,000 won on this day.

Jo Yeonju, a researcher at Mirae Asset Securities, stated, "We changed the base year for earnings from this year to next year. By applying the average price-to-earnings ratio (PER) of the global leading group’s estimated earnings per share (EPS) for next year, we raised the target PER to 25 times."

She added, "High-margin orders have accumulated, pushing the order backlog to approximately 9.2 trillion won, setting new record highs day after day. The stock is trading at a discounted valuation compared to the visible trend of profit improvement, indicating ample room for revaluation."

In the second quarter of this year, revenue was 906.2 billion won, down 1.2% from the same period last year, and operating profit was 209.1 billion won, a decrease of 0.4%. Jo pointed out, "While the numbers may seem modest, considering the rise in standalone operating margin, the high profitability of the order backlog continues to be reflected in the results."

She also noted, "As of the second quarter, the United States accounted for 64% of the order backlog, while the Middle East, Europe, and Korea each represented more than 10%. Europe, in particular, is seeing the largest growth in orders and a high proportion of high-value-added products, making it a notable alternative market to the Middle East. Unit prices are also set at levels comparable to the Middle East, so along with top-line growth, a full-fledged contribution to profit improvement is expected starting next year."

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