[Click eStock] "Myeongshin Industry, Growth Improvement Expected in the Second Half of This Year"

Hana Securities forecasted on the 15th that Myungshin Industry's growth prospects will improve in the second half of this year. No investment opinion or target price was provided.

Myungshin Industry recorded sales of 439.4 billion KRW and operating profit of 40.9 billion KRW in the fourth quarter of last year. These figures represent decreases of 6% and 15%, respectively, compared to the same period last year. The operating profit was about 15% below the previous estimate of 48.3 billion KRW.

Song Seon-jae, a researcher at Hana Securities, analyzed, "While the production growth rate of major clients slowed, there was a decline in selling prices and profitability deterioration. Additionally, the average KRW-USD exchange rate fell by 3% compared to the same period last year, which also had a negative impact."

Researcher Song expects growth to improve from the second half of this year. He predicted, "This year, industrial demand and client production growth rates will be lower than the previous two years, and delivery prices and average exchange rates will also decline." Furthermore, he added, "With increased deliveries to the Texas plant for global electric vehicle (EV) companies and the completion of the second Texas plant in the second half, production capacity will expand, leading to improved growth rates in the second half of this year."