[Click eStock] "Kumho Tire, The Prime Time Starts Right Now"

On the 19th, KB Securities analyzed that Kumho Tire has now entered its prime period.

Kim Hyun-gyeom, a researcher at KB Securities, stated in a report on the same day, "We expect the first quarter sales to reach 1.04 trillion KRW and operating profit to be 141 billion KRW, representing increases of 4.1% and 159% respectively compared to the same period last year," adding, "This improvement is due to the tariff reduction effect and the expansion of electric vehicle and large-diameter tire proportions, which have improved the sales structure."

He particularly noted that the operating profit margin in the mid-13% range for the first quarter is a very remarkable figure. He explained, "The key this year is profitability improvement," and analyzed, "With the completion of the Vietnam factory expansion leading to reduced labor costs, stabilized and lowered raw material input costs, an increase in the proportion of large-diameter (18 inches or more) tires, and the launch of the electric vehicle brand 'EnnoV,' the proportion of EV use in OE is expected to rise. This is anticipated to further increase the average selling price (ASP) that has been rising since last year, creating a very favorable atmosphere."

He continued, "Following last year's turnaround, the profit improvement due to the stabilization of the cost of sales ratio is expected to be significant," and added, "Additionally, the improvement in corporate financial structure and expectations for future shareholder return policies are also positive points."