[Click eStock] "CNC International, Records Highest Quarterly Performance"

Hana Securities stated on the 5th that CNC International achieved its highest quarterly performance in Q2 of this year and is expected to record the highest sales each quarter in the second half of the year as well.

CNC International reported consolidated sales of 80.3 billion KRW and operating profit of 11.8 billion KRW in Q2, marking increases of 41% and 14% respectively compared to the same period last year. Following the breakthrough of 70 billion KRW in sales in the previous quarter, sales surpassed 80 billion KRW, setting a new record for the highest quarterly sales once again.

Researcher Eunjeong Park of Hana Securities explained, “The continued strong performance is based on a favorable industry environment, the company's product development capabilities, and passionate sales efforts,” adding, “There is a virtuous cycle ongoing: strong demand for the company’s manufactured products → increase in customer base → surge in orders.”

Researcher Park further stated, “In response to the surge in orders, the company expanded and automated its facilities in Q3 last year, and additionally secured leased factories in Q2 this year to increase production capacity,” and analyzed, “With the completion of expansion (extension) in Q3, production capacity is expected to rise in a stepwise manner.”

Park noted, “The year-on-year sales growth rates by region in Q2 were 95% domestically, -14% in North America, 41% in Asia, 58% in Europe & the Middle East, and -51% in China,” and analyzed, “There are fluctuations in sales by region depending on delivery and launch schedules for each customer, and the first half of the year was characterized by a sharp increase in orders mainly from domestic customers.”

He continued, “Despite the strong performance, the stock price declined due to macroeconomic market shocks such as concerns over the US economic slowdown,” but projected, “However, with the surge in orders since the beginning of the year and simultaneous expansion of production capacity, strong order momentum is expected to continue in the second half, especially with an increase in global volume. Additionally, productivity improvements and the operation of expanded factories will contribute to stepwise sales growth.”