[Featured Stock] Dong Sung Fine Tec Expected to Benefit from Alaska Project... 'Rapid Profit Growth'

Dongsung FineTec is showing strong performance. Amid increasing demand for insulation materials used in liquefied natural gas (LNG), securities firms' analysis that the company has sufficient production capacity and benefits from exchange rates appears to be influencing the stock price growth.

As of 9:56 AM on the 12th, Dongsung FineTec is trading at 26,100 KRW, up 13.23% from the previous day.

Researcher Wi Kyung-jae from Hana Securities explained, "Dongsung FineTec's production capacity is approximately 34 vessels based on sales," and "Considering that the insulation material price is about 25 billion KRW, even supplying 30 vessels annually could generate sales of around 750 billion KRW."

He added, "The funds required for insulation material expansion are not burdensome, so the company can adequately respond to the expanding LNG market."

He continued, "As confirmed through last year's fourth-quarter performance, if the KRW-USD exchange rate maintains the 1,400 KRW per dollar level, the profit improvement margin will further expand," and emphasized, "The price of MDI, the raw material for insulation, will also remain low unless oil prices surge."

He also viewed that the Alaska gas field development project, actively promoted by U.S. President Donald Trump, could be a potential opportunity. Researcher Wi expressed expectations, saying, "Dongsung FineTec has experience in onshore and offshore insulation material businesses, enabling it to benefit from new forward demand."

This year, Dongsung FineTec is estimated to achieve sales of 750.7 billion KRW and operating profit of 78.8 billion KRW, representing increases of 26.2% and 53.0%, respectively, compared to last year. The target stock price was raised from 30,000 KRW to 35,000 KRW.