Kumho Petrochemical's stock is strong in the early trading on the 20th. The buying trend is attributed to expectations that the company's operating profit for the first quarter (January to March) will significantly exceed market forecasts.
Kumho Petrochemical is trading at 116,900 won, up 4,100 won (3.63%) from the previous day, as of 9:41 a.m. in the securities market.
The improved buying sentiment is interpreted as a result of the securities industry's outlook that Kumho Petrochemical will achieve an operating profit significantly exceeding market consensus in the first quarter.
IBK Securities projected in a report that Kumho Petrochemical would record 84.4 billion won in operating profit for the first quarter, significantly exceeding market expectations (approximately 7.4 billion won). This figure represents a 746% increase compared to the previous quarter.
Lee Dong-wook, a researcher at IBK Securities, noted, "The operating profit for synthetic rubber is expected to increase significantly to 35 billion won, reflecting a 90% rise compared to the previous quarter," adding, "A positive lagging effect (the time difference effect with input materials) is occurring."
The analysis by this researcher indicates that as the production capacity of Southeast Asian tie-up companies has improved, Kumho Petrochemical's synthetic rubber selling prices have also been on the rise.