[Featured Stock] Korea FT Holds Monopoly on Core Parts for Hybrid Cars Twice as Expensive... 'Market Cap Too Low'

Korea FT is showing strong performance. The company's record-high earnings, driven by robust hybrid vehicle sales, appear to have influenced securities firms' analyses predicting continued growth.

As of 10:12 AM on the 29th, Korea FT is trading at 5,520 KRW, up 8.24% from the previous day.

Hwang Ji-hyun, a researcher at NH Investment & Securities, explained, "Considering the favorable upstream industries and earnings growth potential, the price-to-earnings ratio (PER) of 5.6 times based on this year's expected earnings is undervalued." He added, "We expect the strong sales of hybrid vehicles to continue" and predicted, "As the only domestic producer of carbon canisters, Korea FT will maintain its monopolistic position due to technical entry barriers."

He emphasized, "Due to strengthened environmental regulations, the average selling price (ASP) has increased 3 to 4 times over the past decade, driving Korea FT's external growth," and noted, "Carbon canisters installed in hybrid vehicles require advanced technical skills." Additionally, he stated, "The average price is more than twice that of existing products."

Researcher Hwang explained, "Major automakers such as Ford, GM, and Mercedes-Benz have announced plans to strengthen hybrid vehicle production," adding, "A favorable market atmosphere is forming for Korea FT." He further remarked, "It is time to reassess Korea FT's valuation."