[Click eStock] "Hankook Tire, Target Price Raised... Continued Strong Earnings Expected"

Daishin Securities on the 26th raised the target price of Hankook Tire & Technology to 65,000 KRW and maintained a buy rating.

The target price was based on a 2024 earnings per share of 8,125 KRW and a price-to-earnings ratio of 8 times (a 10% discount compared to the global peer group average). It was expected that strong performance would continue this year due to stable market conditions. The target price was adjusted upward by 8.3% compared to the previous estimate, reflecting the upward revision of earnings forecasts.

Kim Gui-yeon, a researcher at Daishin Securities, said, "Ahead of the Q1 earnings announcement season in April, stable market conditions are continuing," adding, "As a representative value play stock, it is necessary to increase interest during the earnings season."

In the case of Hankook Tire, sales in the first half of last year reached 4.4 trillion KRW, maintaining better operating performance compared to competitors. Although the improvement in the first quarter of this year may appear lower compared to competitors, attention should be paid to the fact that it is showing stable quarterly sales of over 2 trillion KRW and operating profit of around 300 billion KRW.

This year, sales growth is expected to slow compared to last year. However, with stabilization of raw material and shipping costs and limited price competition among companies, it is forecasted that stable profitability with an OPM in the 10% range will be achievable. In the long term, growth visibility is expected to increase as mass production at the US Tennessee plant begins in 2026 and the Hungary plant in 2027.