[Click e-Stock] "HD Hyundai Electric, Too Good To Miss...Target Price Raised"

On April 13, Daishin Securities maintained its "Buy" rating on HD Hyundai Electric and raised its target price to 1,220,000 won.

Minho Heo, a researcher at Daishin Securities, explained the rationale behind the target price increase in a report titled "Stocks Too Good To Miss" released on this day, stating, "Taking into account that the lead time for order contracts has been extended to more than three years since the second quarter of 2026, we have reflected the expected earnings for 2029."

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The newly suggested target price of 1,220,000 won implies more than 20% potential upside from the current share price. As of April 10, HD Hyundai Electric's stock price stood at 999,000 won.

Heo projected that the actual slot reservation lead time for HD Hyundai Electric would be around five years. He also viewed positively the operation of the Cheongju power distribution equipment plant and the expanded orders for high-priced 756kV power equipment.

He anticipated, "Since the expansion effect is based on the initial design capacity, the actual impact will be even greater when considering product price increases and productivity improvements." He further emphasized, "The accelerated high growth of 765kV power equipment in the North American market and the expansion of orders are positive factors for long-term growth. Given the continued supplier dominance in the global power equipment market, securing additional growth drivers such as further expansion and M&A can be sufficiently expected."

HD Hyundai Electric is estimated to have achieved sales of 1.09 trillion won and operating profit of 252.7 billion won in the first quarter. This represents increases of 7% and 16%, respectively, compared to the previous year. Heo diagnosed, "Although there are concerns about disruptions in sales to the Middle East due to the aftermath of the Iran war, this can be partially offset by the rise in the dollar exchange rate."

This year's annual sales are forecast to increase by 18% to 4.81 trillion won, and operating profit is projected to grow by 28% to 1.28 trillion won. He anticipated, "The proportion of high-margin North American sales will increase from 30% in 2024 to 40% in 2025, 47% in 2026, and 54% in 2027, leading to continued gradual improvement in profitability."

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