[Click eStock] "Hanguk Danja, 'North America Sales Up' Continues Performance Beyond Market Expectations"

Hana Securities praised on the 21st that Korea Terminal, a specialized manufacturer of automotive electronic components, continues to record results far exceeding market expectations as its North American sales surge.

Korea Terminal achieved sales of 378 billion KRW and operating profit of 48.5 billion KRW in the third quarter of this year. These figures represent increases of 19% and 48%, respectively, compared to the same period last year. In particular, operating profit exceeded market forecasts by 30%. The operating profit margin was 12.8%, the highest ever for a third quarter, which is typically an off-season.

Seonjae Song, an analyst at Hana Securities, analyzed, "Sales in Poland decreased by 17%, but sales in Korea increased by 6%, and sales in the United States surged by 317%. The combined North American sales from the US and Mexico accounted for 21% of total sales, up 15 percentage points."

Analyst Song emphasized, "Driven mainly by rapid growth in ICB (Inter-Connect Board) for electric vehicles, cumulative sales in the North American region up to the third quarter of this year are 3.3 times last year's annual sales, already far exceeding performance targets."

He explained, "With ICB products priced significantly higher than existing connectors, increased deliveries to North American automakers and favorable exchange rates have noticeably improved profit margins."

He added, "The operating regions are expanding to the US and Europe, and the global customer base is diversifying to include global electric vehicle companies and secondary battery manufacturers. Currently, the stock price is at about 5 times the price-to-earnings ratio (PER), which is considerably undervalued compared to its high growth potential and profitability."