[Click eStock] "HD Hyundai Electric, Q4 Earnings Reflect One-Time Factors"

LS Securities analyzed on the 21st that HD Hyundai Electric's fourth-quarter performance last year fell short of market expectations but attributed this to one-off factors.

HD Hyundai Electric recorded consolidated sales of 815.7 billion KRW and operating profit of 166.3 billion KRW in the fourth quarter. This represents an increase of 2% and 33% respectively compared to the same period last year.

Seong Jong-hwa, a researcher at LS Securities, explained, "The market expectation was sales of 979.2 billion KRW and operating profit of 215.6 billion KRW," adding that "the delay in delivery of power transformers was due to circumstances with a US client."

He continued, "Delivery delays caused by client circumstances can occur intermittently in any quarter," and "the fourth quarter of last year was just larger than usual."

Researcher Seong analyzed, "The primary expansion of ultra-high voltage transformers at the headquarters Ulsan plant and the Alabama plant in the US was completed in November last year," noting that "the expansion scale corresponds to annual sales of 140 billion KRW and 80 billion KRW respectively." He added, "the operation rate target is 70% this year and 100% next year," emphasizing that "the secondary expansion will be completed next year."

He maintained a target stock price of 560,000 KRW, stating that "the favorable industry conditions will continue and strong performance growth will follow."