Sangsangin Securities analyzed on the 17th that PHIA is expected to have profit growth along with a new shareholder return policy. The investment opinion was maintained as 'Buy,' and the target price was raised to 16,000 KRW.
Sangsangin Securities forecasted that PHIA's sales and operating profit for the second quarter will be 307.9 billion KRW and 17.9 billion KRW, respectively, representing increases of 9.5% and 8.6% compared to the same period last year.
Yoo Mingi, a researcher at Sangsangin Securities, explained, "It is expected to be the sole supplier of door modules for the mass-produced models at Hyundai Motor Group's Georgia plant in the United States," adding, "They are also preparing to secure orders for new door latch products for global customers."
He continued, "The Chennai subsidiary in India is expected to respond to Kia's Seltos mass production volume, and they are preparing to establish a new factory near Hyundai Motor's Talegaon plant with a goal of starting mass production in November 2025."
He stated, "PHIA's annual sales for 2024 are also expected to increase by more than 10% compared to the previous year," and explained, "It is positive that the cumulative second-quarter order targets for finished vehicles have been sequentially achieved, and this year's order target of 2.5 trillion KRW greatly exceeds the past five-year average of 1 trillion KRW."
He emphasized, "Based on the secured order backlog, PHIA plans to achieve sales of 1.8 trillion KRW and an operating profit margin of 5% by 2028," adding, "Since it holds net cash of around 100 billion KRW, it plans to raise the dividend payout ratio to 25-30% only for net profits generated in the future."
He added, "We can expect external growth due to the expansion of sales scale toward major overseas automakers, including GM, in the mid to long term."
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