[Click eStock] HD Hyundai Infracore, Q2 Earnings Disappoint... Target Price Down 11,000 Won

Kyobo Securities lowered the target price for HD Hyundai Infracore to 11,000 KRW on the 23rd, citing second-quarter earnings that fell short of market expectations. The investment rating was maintained at 'Buy.'

Analyst Ahn Yudong of Kyobo Securities stated in the report, "Second-quarter sales amounted to 1.1082 trillion KRW, and operating profit was 81.5 billion KRW, both below market expectations," adding, "The main cause of the poor performance was a decrease in volume, similar to the first quarter."

Analyst Ahn further explained, "While the effect of price increases was positive, it was offset by increased promotion costs," and added, "The exchange rate had a positive impact, but costs rose by 8.2 billion KRW due to increased fixed expenses and logistics costs caused by detours related to the Red Sea incident."

In the second half of the year, the North American region is expected to have a positive impact on the company due to an interest rate cut in September and the effect of Trump's election.

Analyst Ahn said, "In the second half, the North American region is expected to benefit positively from traditional business investments and manufacturing reshoring effects due to the September interest rate cut and expectations surrounding Trump's election," adding, "Europe's confidence in the economy has declined, so it is expected that more time will be needed until the effects of interest rate cuts become apparent."