[Click eStock] "Seoyeon E-Hwa, PER Only 2.5 Times"

Hana Securities analyzed on the 28th that Seoyon E-Hwa's price-to-earnings ratio (PER) is only 2.5 times.

Seoyon E-Hwa recorded sales of 1.0052 trillion KRW and operating profit of 56 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 9% while operating profit decreased by 3%.

Song Seon-jae, a researcher at Hana Securities, explained, "Selling and administrative expenses increased due to fees related to the establishment of overseas factories and restructuring, as well as amortization expenses related to Seoyon E-Hwa Urban acquired last year, which caused the operating profit margin to decline."

He added, "The cumulative operating profit for the third quarter was 150.2 billion KRW, a 2% increase compared to the same period last year."

He analyzed, "This year, quarterly sales have reached 1 trillion KRW and quarterly operating profit 50 billion KRW," and "Next year, new factories in North America and India will begin operations." Additionally, he forecasted, "Seoyon E-Hwa Texas is currently conducting order activities for local electric vehicle companies" and "Seoyon E-Hwa Summit Pune in India will start mass production."

It is estimated that this year’s sales will reach 4 trillion KRW and operating profit 195 billion KRW. Researcher Song explained, "Although the automotive industry’s valuation is low due to concerns about industrial demand slowdown and various policy variables, Seoyon E-Hwa is particularly undervalued." He added, "It will be re-evaluated as overseas factories begin operations."