[Featured Stock] 'Strong Q3 Performance' Hankook Tire & Technology Up 7.50%

Kumho Tire & Technology, which recorded surprising earnings in the third quarter this year, is showing a strong gain of over 7%.

As of 9:50 AM on the 5th, Kumho Tire & Technology was trading at 39,400 KRW, up 2,750 KRW (7.50%) from the previous trading day.

The consolidated third-quarter results showed sales of 2.4353 trillion KRW and operating profit of 470.2 billion KRW, increasing by 4% and 19% respectively compared to the same period last year. The operating profit margin rose by 2.4 percentage points to 19.3%. The operating profit exceeded the market consensus forecast by 15%. The drivers of the performance include ▲ increased sales of high-inch tires ▲strong sales in the European market ▲and relatively low cost burdens.

On the same day, BNK Investment & Securities raised the target price of Kumho Tire & Technology from 57,000 KRW to 65,000 KRW and maintained a buy rating.

Lee Sang-hyun, a researcher at BNK Investment & Securities, said, "The high profit level is expected to be maintained, and the stock price level allows for a dividend yield of over 6%. The acquisition of Hanon Systems is expected to be completed within the year, and after moving past the previous controversy over the high acquisition price, normalization is expected to continue from next year."