[Click e-Stock] "Taekwang Proven by the Numbers, Share Price Will Follow"

IBK Investment & Securities has maintained its Buy rating on Taekwang and raised its target price to 35,000 won.

On January 15, IBK Investment & Securities analyst Cho Junghyun stated, "The reason for raising the target price is the upward revision of earnings estimates and the potential for a revaluation of the company's valuation as its order book expands into new front-end industries." He added, "Taekwang is moving beyond its traditional business structure centered on petrochemicals and energy plants, expanding its scope into fixed asset investment areas of the Fourth Industrial Revolution. This is seen as a factor that simultaneously enhances both mid- to long-term growth potential and earnings visibility."

Taekwang's fourth-quarter results are estimated at 83.1 billion won in revenue and 12.5 billion won in operating profit. These figures represent increases of 25.6% and 29.5%, respectively, compared to the same period last year. Its subsidiary HYTC posted third-quarter 2025 results of 8.2 billion won in revenue and an operating loss of 600 million won. However, considering the continued rise in operating rates, fourth-quarter revenue is projected to reach 10 billion won, with a turnaround to operating profit expected.

Analyst Cho commented, "The order flow has entered a recovery phase. Separate orders by quarter for 2025 are showing a gradual increase: 65.7 billion won in the first quarter, 70.3 billion won in the second quarter, and 75.2 billion won in the third quarter." He added, "However, fourth-quarter orders are expected to reach 69 billion won, which is considered a temporary slowdown due to the holiday season in Europe and the Americas at the end of the year."

For this year, Analyst Cho estimates Taekwang's consolidated operating results at 341.4 billion won in revenue and 56.8 billion won in operating profit, representing increases of 14% and 45.5%, respectively, compared to last year.

He further stated, "We expect the plant operating rate to rise to 90% in the second half of 2026," and added, "In the previous cycle (2008-2012), when the operating rate exceeded 90%, the operating margin expanded to around 25%. Therefore, we believe there is ample potential for margin improvement in this cycle as well."