SK Securities noted on the 7th that there is potential for Hankuk Carbon's stock price to rise through the expansion of new production lines and the supply of cooling material 'secondary barrier (SB)' to Chinese shipyards. It raised its target price from the previous 18,300 won to 24,000 won, maintaining its investment opinion of 'buy.' The closing price of Hankuk Carbon on the previous trading day was 16,830 won.
SK Securities projected that Hankuk Carbon's consolidated revenue for the first quarter of this year will reach 214.3 billion won, a 17.3% increase from the previous year, and its operating profit will rise by 758.2% to 22.4 billion won. Han Seung-han, a researcher at SK Securities, said, 'The efficiency of the process has greatly improved due to continuous facility investment after the fire, and performance has significantly recovered due to the stabilization of the price of materials and supplies, improvement in defect rates, and exchange rate effects.'
The annual revenue is expected to be 847.4 billion won, operating profit at 95.3 billion won, and the operating profit margin (OPM) at 11.2%. Hankuk Carbon currently has a total production capacity of 34 vessels, expanded from 23 vessels prior to the Miryang factory fire in 2023, through the addition of CNC equipment. In March, it conducted new production facility investment with 40 billion won raised through the issuance of exchangeable bonds and convertible bonds.
A researcher noted, 'An additional expansion is expected for the production of approximately 70 vessels of SB, and the supply to Chinese shipyards will also be expanded.' It seems that productivity will increase through the acquisition of new facilities and automation lines, leading to improved performance.
A researcher stated, 'Due to the expected additional expansion and the consequent supply increase to China, as well as the anticipated orders for Indian slots in 2027, a reevaluation is necessary at this point.' They added, 'It is now a point where we can expect the stock price of Hankuk Carbon, which has been lower compared to competitors, to rise significantly.'