[Asia Economy Reporter Hyungsoo Park] Yuanta Securities forecasted on the 17th that the electric vehicle and hydrogen vehicle trends will help increase sales for Copra.
Jinhyung Park, a researcher at Yuanta Securities, explained, "High-performance polymer materials are durable yet lightweight" and added, "They are effective for vehicle weight reduction, improved fuel consumption efficiency, reduced exhaust emissions, and cost savings."
He continued, "These materials align with automakers' fuel efficiency improvement strategies and various governments' eco-friendly policies," and noted, "The electric vehicle and hydrogen vehicle trends in the upstream industry are positive factors for the company's sales growth."
Furthermore, he emphasized, "Copra is expected to respond to the expanding demand in the upstream industry due to increased operating rates at its factories in the United States and China," and added, "The U.S. factory currently operates 4 production lines, and the Chinese factory operates 3 lines, with local production gradually increasing in response to rising demand."
He analyzed, "The reduction in cost burden due to stabilized raw material prices is also a factor for improved performance," noting, "Copra's major raw material purchase costs surged from 2017 to 2019 but have stabilized since the second half of last year."
Researcher Park assessed, "Copra's current price-to-earnings ratio (PER) is around 9.1 times," and concluded, "Considering solid performance, inherent growth potential, and the possibility of benefits from expanded eco-friendly vehicle sales, it is an attractive level."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
