Hanju Light Metal is showing strong performance. News of achieving record-high sales last year appears to be influencing the stock price.
As of 2:02 PM on the 20th, Hanju Light Metal is trading at 4,305 KRW, up 13.29% compared to the previous trading day.
On a consolidated basis, Hanju Light Metal recorded sales of 232.5 billion KRW and an operating profit of 5.3 billion KRW last year. Sales increased by 23% year-on-year, while operating profit decreased by 26%.
Hanju Light Metal cited the following factors for achieving record sales: ▲ strong sales of ultra-lightweight parts and marine parts ▲ increase in overseas sales. Compared to the previous year, sales of ultra-lightweight parts increased by 45%, and marine parts sales rose by 90%. Overseas sales grew by 33% year-on-year, reaching 79 billion KRW.
The proportion of overseas sales to total sales for Hanju Light Metal is about 59%, and it is expected to continue its growth trend through the Slovakia production base established in September last year.
Operating profit decreased by 26% year-on-year. The company explained that this was due to delays in factory operations and increased manufacturing costs caused by the energy crisis in the local area following the establishment of the Slovakia subsidiary amid the Russia-Ukraine war. On a separate basis, operating profit increased by 13% year-on-year to 8 billion KRW, showing solid growth excluding the impact of the Slovakia subsidiary.
A representative of Hanju Light Metal stated, "With the full-scale operation of the European Slovakia plant, we plan to actively respond to orders from European automakers and secondary battery companies by expanding local production volume," and added, "We expect not only sales growth but also improvement in operating profit."
They continued, "In addition to lightweight products for vehicles, we are pursuing sales diversification by entering the ship parts and 5G communication relay business," and added, "We will establish a foundation for sustainable growth based on the technological capabilities acquired through ongoing R&D government projects."
Since August last year until January this year, Hanju Light Metal signed four contracts with the global automobile manufacturer GM for four types of internal combustion engine parts. The contract size is approximately 247.3 billion KRW, with a duration until December 2035. Starting from the first half of this year, the company plans to begin full-scale mass production of knuckles and carriers for large electric SUVs of Hyundai and Kia Motors.
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