[Market Focus] HD Hyundai Electric Hits Record High on Strong Q3 Results

Strong Rally of Over 4%

HD Hyundai Electric recorded a new all-time high in early trading on October 24, driven by strong third-quarter results.

As of 9:17 a.m. on this day, HD Hyundai Electric shares were trading at 776,000 won on the Korea Exchange, up 4.02% from the previous trading day. The stock opened at 750,000 won and continued to rise, reaching as high as 777,000 won during intraday trading.

On the previous day, HD Hyundai Electric announced its third-quarter results for this year, reporting sales of 995.4 billion won and operating profit of 247.1 billion won. These figures represent increases of 26.2% and 50.9%, respectively, compared to the same period last year.

Sales of power equipment surged by 87.7% year-on-year, driven by increased transformer sales in major overseas markets and higher sales of high-voltage circuit breakers in the domestic market. In particular, sales in the European market grew by 76.1% as backlogged orders began to be converted into sales.

The operating margin reached 24.8%, thanks to improved profitability in both the power equipment and rotating machinery sectors. This marks a steady upward trend, following 20.4% in the fourth quarter of last year, 21.5% in the first quarter of this year, and 23.1% in the second quarter.

On this day, major securities firms consecutively raised their target prices for HD Hyundai Electric. Naminsik, a researcher at SK Securities, raised the target price to 1 million won, stating, "Even if there are unexpected variables, the likelihood of profitability being undermined is low." Lee Sanghyeon, a researcher at BNK Investment & Securities, also raised the target price from 640,000 won to 900,000 won, forecasting that the company will continue its stable sales growth.