[Click eStock] "Ajin Industrial, Increasing Share of U.S. Sales"

On November 28, Yuanta Securities analyzed that Ajin Industrial's proportion of sales in the United States is increasing. The company expects that the rising share of SUV sales by Hyundai Motor will lead to a tangible operating profit leverage effect reflected in Ajin Industrial's performance. Yuanta Securities newly presented a "Buy" investment rating and set a target price of 3,200 won.

Kim Yongmin, a researcher at Yuanta Securities, stated, "The proportion of sales in the United States has risen from 57% in 2021 to 83% on a cumulative basis through the third quarter of this year," adding, "Considering that Hyundai Motor's Alabama plant is focused on producing SUV models, it is likely that additional production models at the new Georgia plant will also be SUVs."

He continued, "Ajin Industrial is also supplying body parts for the Palisade LX3," and added, "An increase in production volume is also expected to result in higher unit prices."

He further analyzed, "For the Santa Fe, the unit price of body parts for the new model (MX5) is about 80% higher than that of the previous model (TM)," and explained, "Ajin Industrial can benefit from the increase in unit prices that occurs when Hyundai Motor updates its main SUV lineup."

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