[Click eStock] "BHI, New Orders Since Early This Year... Target Price Raised"

On March 20, Shinhan Investment Corp. analyzed that expectations for performance growth at BHI are rising, citing a series of new orders secured since the beginning of the year. The firm maintained its 'Buy' investment rating and raised its target price to 27,000 KRW.

Last year, BHI posted sales of 147.1 billion KRW and operating profit of 7.7 billion KRW. While sales increased by 81.5% year-on-year, operating profit declined by 31.9%. Choi Kyuhun, a researcher at Shinhan Investment Corp., stated, "Revenue recognition for multiple HRSG projects awarded in the first half of last year began in earnest. In the fourth quarter, a sharp rise in exchange rates led to annual derivative valuation losses of approximately 20 billion KRW, causing a pre-tax loss for the year. However, due to a corporate tax refund, the company was able to maintain an annual net profit."

Shinhan Investment Corp. forecasts BHI's sales and operating profit for this year to reach 623 billion KRW and 34.4 billion KRW, respectively, up 53.9% and 56.8% from the previous year. He emphasized, "HRSG and BOP are expected to record 467.6 billion KRW and 43.6 billion KRW in sales, respectively, driving overall company growth. Expectations for performance growth are being further heightened by a series of new orders since the start of the year."