[Click eStock] "Jinsung T.E.C, Performance Improvement to Accelerate Next Year... Target Price Up 7%"

[Asia Economy Reporter Park Jihwan] Yujin Investment & Securities emphasized on the 24th that Jinseong T.E.C is expected to start a turnaround from the 4th quarter, and that the improvement in sales and profits will be greater next year, making the current time an ideal buying opportunity. The investment opinion was maintained as 'Buy,' and the target price was raised by 7.14% from the previous 14,000 KRW to 15,000 KRW.

Researcher Han Byunghwa of Yujin Investment & Securities said, "Sales in the 4th quarter are expected to increase for the first time in six quarters," adding, "The 4th quarter sales are estimated to be 85.4 billion KRW, an 8.8% increase compared to the same period last year."

In particular, the improvement in 4th quarter sales is expected not to be a one-time event. Researcher Han stated, "Orders from customers are increasing at factories in Korea, China, and the United States," and "Next year, as the impact of the COVID-19 pandemic decreases and infrastructure investments expand, such as fostering the green industry, demand for construction machinery is expected to increase globally."

The demand for construction machinery parts, the company's core business, is recovering faster than expected, leading to upward revisions in performance forecasts, but the stock price is showing a correction trend. The fact that the stock prices of global construction machinery companies, which are customers, are maintaining record-high upward trends suggests an anticipation of fundamental improvements.

Researcher Han emphasized, "The acquisition of new growth drivers, such as parts for hydrogen fuel cell power generation, should also be considered in the valuation," adding, "The turnaround starts from the 4th quarter, and since the improvement in sales and profits will be greater next year, the current time is an ideal buying opportunity."