[Click eStock] "Kumho Tire Expected to Achieve Record High Performance in 2024"

On the 10th, KB Securities forecasted that Kumho Tire is expected to achieve record-high performance in 2024.

Kim Hyun-gyeom, a researcher at KB Securities, stated in a report on the same day, “Kumho Tire's consolidated sales last year reached 4.57 trillion KRW, a 13.1% increase compared to the previous year, and operating profit is expected to increase by 46.1% to 600.7 billion KRW,” adding, “This corresponds to an operating profit margin (OPM) of 13.1%.”

Researcher Kim said, “Kumho Tire will meet all the targets announced at the beginning of the year, including ▲sales of 4.56 trillion KRW ▲a 42% share of tires sized 18 inches or larger ▲and an EV (electric vehicle) tire sales ratio of over 16%,” and explained, “Key achievements this year include ▲the successful launch of the EV brand ‘EnnoV’ ▲performance growth through improved relationships with major clients in the North American and European markets ▲and strengthened financial stability due to the improvement of the debt ratio to below 200%.”

2025 is expected to be a crucial turning point for Kumho Tire to leap forward as a global Tier 1 tire company. Due to a current utilization rate exceeding 100%, expanding production capacity (CAPA) is urgently needed. Accordingly, a slight CAPA expansion of 6?8% using idle land at existing factories is expected to proceed, and in the mid to long term, plans include constructing a new factory in Europe and relocating the domestic Gwangju factory.

In particular, the decision regarding the groundbreaking of the new European factory is expected to be finalized as early as the first half of this year. Regarding the Gwangju factory relocation, a service conducted by Gwangsan-gu, Gwangju on December 18 last year analyzed that the economic effect would increase tenfold and direct and indirect employment would expand about fivefold upon relocation. Kumho Tire recently announced the purchase of a new site in Hampyeong (approximately 150,000 pyeong) for 116 billion KRW, enhancing its mid- to long-term growth potential.

This year, Kumho Tire plans to expand the sales ratio of tires sized 18 inches or larger to over 45% and set the EV tire supply ratio target at 20?25%, focusing company-wide capabilities on these goals.

Researcher Kim analyzed, “Kumho Tire has demonstrated stable profit resilience by maintaining an operating profit margin of 12?13% for five consecutive quarters,” and added, “EV tire supply is expected to increase due to rising demand from replacement cycles and the expansion of new EV model launches.”