HD Hyundai Electric, a power components company affiliated with HD Hyundai Heavy Industries Group, is experiencing a sharp rebound in its stock price due to strong expectations for significant earnings improvement.
On the 16th, in the stock market, HD Hyundai Electric was trading at 298,000 KRW, up 8.76% from the previous closing price on the 14th. If the upward trend continues, it is expected to surpass the 300,000 KRW mark again soon.
HD Hyundai Electric hit a low of 79,000 KRW at the end of December last year and showed an upward trend for a year and a half, rising to 374,000 KRW last month. This rapid earnings improvement was driven by a surge in demand for power components, especially in North America.
During the recent market adjustment caused by the unwinding of yen-carry trades, the stock price fell below the 250,000 KRW level but has recently fluctuated between 250,000 and 320,000 KRW.
The sudden sharp rise today is due to heightened expectations for earnings improvement in the North American market. News has emerged that the company, following transformers which acted as a catalyst for earnings improvement, has begun targeting the North American market with rotating machines.
Rotating machines are devices with moving parts that rotate around a shaft, such as motors, generators, and turbines, converting electrical energy into mechanical energy. They are widely used in general industrial sectors, energy fields, and medical devices.
Meanwhile, HD Hyundai Electric achieved consolidated sales of 916.9 billion KRW and operating profit of 210 billion KRW in the second quarter of this year. These figures represent improvements of 43% and 257%, respectively, compared to the same period last year. The securities industry has described the second-quarter results as a ‘super surprise’ that greatly exceeded market expectations.
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