[Click eStock] "Hwashin, Domestic and Overseas New Factories Sequentially Operating... Performance Improvement from Q4"

Hana Securities forecasted on the 6th that Hwashin, an automobile parts company, will show a trend of performance improvement starting from the fourth quarter of this year. It is expected that the sequential start of operations at the Yeongcheon plant in Gyeongbuk and the Georgia plant in the United States will lead to an increase in sales.

In a report released on the same day, Hana Securities predicted that Hwashin will achieve sales of 442.5 billion KRW and an operating profit of 11.1 billion KRW in the fourth quarter of this year. These figures represent increases of 1% and 78%, respectively, compared to the same period last year. Analyst Song Seonjae of Hana Securities evaluated, "Sales of battery pack cases (BPC) are increasing due to the expansion of electric vehicle (EV) production volume by the client Hyundai Motor Group, and the performance of overseas subsidiaries is also expected to improve due to the rise in exchange rates."

Analyst Song explained, "The BPC and chassis plant in Yeongcheon, in which 80 billion KRW was invested, started supplying to Hyundai Motor Group's EV production from July," adding, "Although the pace of supply volume increase is slow, sales will gradually increase as additional models such as the EV4 begin production next year."

He also noted, "Hwashin's Georgia plant in the United States is scheduled to supply main products to Hyundai Motor Group Meta Plant America (HMGMA)," and predicted, "After investing a total of 200 billion KRW and completing construction in the first half of next year, sales will start in earnest from the second half." He further mentioned, "A leased plant in Pune, India, is also planned to operate in the second half of next year."

He added, "Both the Yeongcheon and Georgia plants have initial investment and fixed cost burdens, which will act as factors limiting profitability for a while despite sales growth," but forecasted, "As the operating rate rises and economies of scale occur, profitability will gradually improve."