[Click eStock] "Myeongshin Industry's Stock Price Likely to Rebound from Second Half... Target Price 20,000 Won"

Potential Stock Price Rebound from Second Half
High Tesla Weight...Positive Factor if Tesla Rebounds
2024 Operating Profit Margin Expected in Double Digits

Daishin Securities analyzed on the 1st that considering interest rates, Cybertruck, and Mexico momentum, there is a high possibility of a stock price rebound for Myungshin Industry from the second half of the year. They maintained a 'Buy' investment rating and a target price of 20,000 KRW. The previous closing price of Myungshin Industry was 15,310 KRW.

Kim Gui-yeon, a researcher at Daishin Securities, said, "Since Myungshin Industry's listing in 2020, the stock price has continuously declined due to high valuation and concerns over weakening front-end demand," adding, "We believe a stock price rebound is possible due to the potential rebound in pure electric vehicle (BEV) demand following interest rate cuts in the second half, improved operating rates of Tesla Cybertruck, and visibility of additional orders from the Mexico plant."

The stock price of Myungshin Industry is expected to hinge on Tesla's performance. As of 2023, Tesla accounts for 70% of its sales. There is inevitably a strong correlation between Tesla's business conditions and stock price. Recently, due to decreased electric vehicle demand and a new car gap, the electric vehicle sector, including Tesla, has been sluggish. Researcher Kim stated, "Legacy & BEV companies continue to invest in BEV and expand their lineups, Tesla Cybertruck production is ramping up, and orders from the Mexico plant are scheduled," adding, "When signals of Tesla's stock price and business condition rebound are detected, the stock momentum of Myungshin Industry is also expected to manifest."

Myungshin Industry's sales for 2024 are projected at 1.8 trillion KRW, with operating profit expected to be 212.1 billion KRW. Tesla's delivery volume is anticipated to be 1.9 million units. Researcher Kim said, "There is no problem with growth in 2024," and added, "Cost stabilization will continue, and a double-digit operating profit margin is expected."