[Click eStock] "Jinseong T.E.C., Beneficiary of US Presidential Election Infrastructure... Company Analysis Begins"

Hana Securities announced on the 11th that it has identified Jinsung TCC as a beneficiary stock of the U.S. presidential election infrastructure sector, initiating its corporate analysis with a 'Buy' investment rating and a target price of 14,000 KRW.

Choi Jae-ho, a researcher at Hana Securities, stated in a report released that day, "Looking at the case of the 2016 U.S. presidential election (the 45th presidential election), the company's sales grew approximately twofold over two years, from 177.8 billion KRW in 2016 to 244.4 billion KRW in 2017, and then to 354.7 billion KRW in 2018," adding, "Prior to this, the stock price had already led the market since early 2017 due to expectations of infrastructure investment."

He continued, "Currently, the stock price is below the lower end of the 12-month forward price-to-book ratio (P/B) at 0.6 times, indicating an undervalued phase."

He viewed the infrastructure investment sector as the representative industry that would benefit from both Trump and Harris as presidential candidates. Among these, he emphasized focusing on companies that have factories in the U.S. benefiting from reshoring, have leading U.S. customers in the market, and have actual experience of benefiting after previous U.S. presidential elections.

Researcher Choi explained, "Jinsung TCC possesses these three factors, so it should be noted from now on," adding, "After the 2016 U.S. presidential election, Jinsung TCC's subsidiary, JINSUNG AMERICA, saw its sales rapidly grow from 62.4 billion KRW in 2016 to 103.7 billion KRW in 2018, directly benefiting from the election."

He projected Jinsung TCC's sales for this year at 393.5 billion KRW and operating profit at 24.1 billion KRW, with sales expected to reach 404.5 billion KRW and operating profit 29.0 billion KRW by 2025.

He added, "In 2026, sales are expected to accelerate to 605.1 billion KRW and operating profit to 50.8 billion KRW," noting, "The company negotiates average selling prices (ASP) every six months, and in 2026, the execution of infrastructure investments following the presidential election and the upcycle in the excavator industry (such as the replacement cycle of Chinese excavators) will coincide, so from the first half of 2025, the effect of price increases is expected to normalize profitability and lead to significant external growth."