[Click eStock] "PHA Continues Growth in North America and India"

Sangsangin Securities on the 30th gave a buy rating and a target price of 13,000 KRW for PHA, stating that a long-term approach is necessary considering Hyundai Motor Group's sales growth and active promotion of electrification transition in regions such as North America and India.

In the second quarter of 2023, an increase in sales of PHA's U.S. and Indian subsidiaries is expected due to the increase in sales volume of its clients. Yumin Ki, a researcher at Sangsangin Securities, explained, "After the expansion of Hyundai Motor Group's U.S. Georgia plant is completed in 2024, sales of the North American subsidiary are expected to increase by 15.1%," adding, "Cost reduction effects such as decreased maritime transportation costs are also expected to contribute to the improvement of operating profit margin."

There are a total of three companies supplying door latches to domestic clients, but PHA is expected to be the sole supplier of door modules for mass-produced models at the Georgia plant in the U.S.

Researcher Yumin Ki said, "The stock price has risen 40.1% over the past three months, and profitability has also greatly improved due to the increase in sales volume of major clients," adding, "It is expected to accompany Hyundai Motor Group's supply growth not only in North America but also in emerging markets such as India."

PHA's sales this year are expected to increase by 11.9% year-on-year to 1.14 trillion KRW, and operating profit is expected to increase by 91.5% to 43.8 billion KRW. Researcher Yumin Ki added, "As Hyundai Motor Group's 2023 sales target for the Indian subsidiary of 595,000 units is expected to be exceeded, external growth is also expected to continue."