[Click e-Stock] "HD Hyundai Electric Expected to Continue Performance Improvement"

On January 9, Daishin Securities announced that it expects HD Hyundai Electric’s performance this year to exceed market forecasts and raised its target price from 9.8 million won to 11 million won.

Minho Heo, a researcher at Daishin Securities, stated, "HD Hyundai Electric has provided a sales estimate of 4.35 trillion won for this year," adding, "The stock price was adjusted as this estimate falls short of the market consensus of 4.78 trillion won."

He continued, "The assumed exchange rate in the estimate is 1,350 won per U.S. dollar, which is lower than the current rate of 1,451 won per dollar," and added, "We believe the estimate has been presented conservatively."

Heo analyzed, "Among power equipment, the most severe supply bottlenecks are in the ultra-high voltage and high-voltage transformer sectors," and noted, "Even with the expansion of ultra-high voltage power equipment manufacturers, supply still cannot keep up with medium- to long-term demand."

He predicted, "Orders to secure power equipment, which are in particularly short supply, are likely to be placed earlier than previously expected," and added, "Domestic ultra-high voltage power equipment companies, which last year received their first overseas orders for 765kV-class transformers and circuit breakers, are expected to see a significant increase in orders starting this year."

Daishin Securities estimates that HD Hyundai Electric will achieve sales of 4.8 trillion won this year.