[Special Stock] Faster-Than-Expected Industry Rebound... Jin Sung T.E.C. Surges Over 8%

Shares of Jin Sung T.E.C., a construction heavy equipment parts company, surged on May 20, as strong demand is expected due to a faster-than-anticipated industry rebound.

As of 9:49 a.m. on this day, Jin Sung T.E.C. was trading at 10,330 won, up 840 won (8.85%) from the previous trading day.

On this day, DS Investment & Securities raised its target price for Jin Sung T.E.C. from 15,000 won to 17,500 won, maintaining its buy rating. The firm stated, "Due to an unexpected boom, significant demand is expected to continue through the third quarter." DS Investment & Securities also commented, "In response to concerns over Trump tariffs and subsequent equipment price hikes, front-end demand is expected to remain strong through the third quarter." The firm added, "We maintain our outlook for an industry rebound in the second half of this year and the beginning of a boom cycle next year."

Kim Soohyun, a researcher at DS Investment & Securities, explained, "In the first quarter, Jin Sung T.E.C. recorded sales of 106.6 billion won and operating profit of 9.07 billion won. With sales in the 100 billion won range, the operating margin stood at 8.5%, indicating profitability at the early stage of a boom."

He stated, "The reason for the rapid industry rebound is the increase in demand from front-end companies preparing for price hikes, which has led to a swift depletion of the company's inventory." He added, "Sales in the third quarter are expected to continue growing by more than 20%, with operating profit also projected to grow by nearly 100%. The expected operating margin for the third quarter is 8.6%."

He further noted, "Due to faster-than-expected demand growth, sales this year are expected to increase by 13.6% compared to last year, and operating profit is projected to grow by 54% thanks to improved profitability." He added, "The expected operating margin is 8.5%."