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Kumho Tire (photo = Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Daol Investment & Securities Co. said on the 30th that Kumho Tire is expected to see a sharp surprise in its first-quarter earnings, followed by a rebound in stock prices. The company maintained its investment opinion 'buy' and raised its target price from 8,000 won to 11,000 won.
"Kumho Tire's first-quarter sales and operating profit recorded 1.445 trillion won and 145.6 billion won, respectively," said Daol Investment & Securities Co. "It is the highest operating profit ever since the end of the workout, and its market forecast has also exceeded 40%." The effect of new plants and strengthening the mix of premium products have been shown, and against this backdrop, the expansion of new distribution network trading lines is believed to be directly linked to a steep improvement in performance, researcher Yoo added."
By region, the external growth of Europe and China has been highlighted. Researcher Yoo said, "In Europe, the proportion of high-inch tires increased by 5.5%p from the previous quarter to 32.5%, and in China, it also increased by 4%p from the previous quarter, leading external growth."
Kumho Tire's earnings improvement is expected to continue until the second half of the year. Researcher Yoo said, "The expansion of the second plant in Vietnam played a major role in improving this quarter's performance, and efficiency is expected to increase further in the second half."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
