Research Alume predicted on the 4th that Hyundai Everdigm's performance will improve this year as all business sectors grow. Along with a positive stock price outlook, it presented a target price of 12,500 KRW.
Hyundai Everdigm supplies a diverse range of products including concrete pump trucks, tower cranes, generators, rock drills, fire trucks, and military special vehicles. In the first half of this year, it recorded sales of 193.1 billion KRW and an operating profit of 9.9 billion KRW, increasing by 8.1% and 30.3% respectively compared to the same period last year.
Researcher Choi Seonghwan of Research Alume explained, "The overseas sales ratio in the first half of this year was 58%, up 14 percentage points from 44% last year," adding, "Sales growth rates in Saudi Arabia and Russia reached 182.2% and 130.4%, respectively."
He continued, "Saudi Arabia is leading the global construction market with the construction of Neom City and the implementation of the 'Vision 2030' policy," and added, "Sales of concrete pump trucks are increasing." He also emphasized, "With the outlook of high oil prices in the second half of the year, Middle Eastern governments' budget surpluses are expected to continue, leading to active investment execution."
Researcher Choi analyzed, "The prolonged Russia-Ukraine war has created special demand," noting, "Since the war started with Russia's attack, most European countries have stopped trading with Russia." He added, "Although sales of construction equipment are banned, resource extraction equipment like rock drills can be exported," and further stated, "Due to the EU's suspension of trade with Russia, Hyundai Everdigm's export volume is increasing."
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