[Market Focus] KH Vatec Rallies Over 5% on Third-Quarter Earnings Surprise Expectations

KH Vatec is showing an upward trend on expectations of strong third-quarter earnings this year.

As of 9:23 a.m. on September 2, KH Vatec was trading at 13,000 won, up 650 won (5.26%) from the previous day.

The rise in stock price appears to be driven by optimism about third-quarter earnings. On this day, Daishin Securities projected that KH Vatec would post a third-quarter earnings surprise and raised its target price by 20% to 18,000 won. Park Kangho, a researcher at Daishin Securities, stated, "With increased sales of hinge modules due to strong sales of Samsung Electronics' Galaxy Z Fold 7, third-quarter revenue and operating profit are expected to reach 160.5 billion won and 13 billion won, respectively, representing increases of 73.9% and 87.9% compared to the same period last year." He added, "Compared to previous estimates, revenue will exceed by 43.3% and operating profit by 50.9%, resulting in a significant earnings surprise."