[Click eStock] "Hankook Tire & Technology Upgrades Investment Opinion to 'Buy'"

Hana Securities on the 5th upgraded its investment rating on Hankook Tire & Technology from 'Neutral' to 'Buy,' citing that the stock price has dropped significantly. The target price was maintained at 50,000 KRW.

Researcher Song Seon-jae stated, "The reason for upgrading the investment rating is that since the rating was downgraded to 'Neutral' on May 7, the stock price has fallen by 30%, resulting in a price-to-earnings ratio (P/E) valuation below 4 times based on the current stock price."

He added, "Although I remain negative about the decision to acquire Hanon Systems shares at a high price, I positively evaluate the core business competitiveness, which maintains higher-than-expected profitability due to high utilization rates and mix effects despite low top-line growth and a narrowing price-cost spread."

He also mentioned, "We will further review financial statement adjustments following the future consolidation of Hanon Systems' performance," and added, "Restoring trust in governance and shareholder policies is necessary to achieve valuations above the current target price."

Meanwhile, Hankook Tire & Technology recorded results exceeding market expectations in the third quarter. Sales increased by 4% year-on-year to 2.44 trillion KRW, and operating profit rose by 19% to 470.2 billion KRW. The operating profit margin increased by 2.4 percentage points to 19.3%.