Samsung Securities assessed that HD HYUNDAI INFRACORE does not have a North American production subsidiary, and therefore, it cannot avoid negative impacts when tariffs are imposed. They maintained an investment opinion of 'neutral (Hold).' However, they adjusted the target price slightly upward from the previous 8,000 won to 8,400 won, noting that the Chinese market is recovering.
Han Young-soo, a researcher at Samsung Securities, said, "HD HYUNDAI INFRACORE does not have a local production subsidiary in North America," adding, "If tariff risks materialize and leading companies with local production capabilities opt to expand market share instead of raising prices, negative impacts will be inevitable." This indicates that despite signs of market recovery, tariff uncertainties remain.
He continued, "It is necessary to confirm the pricing policies of leading companies," mentioning that "the proportion of sales from China is still minimal, and it should be considered that the valuations of overseas leading companies, such as large firms in Japan, are at a low level."
However, the potential for a rebound in the Chinese market was viewed positively.
A researcher analyzed, "The stock price of HD HYUNDAI INFRACORE has shown a high correlation with the Chinese construction equipment market conditions for a long time," adding, "By outsourcing the production volumes of HD Hyundai Construction Equipment's Chinese corporation, it can improve the profitability of local subsidiaries."
According to Samsung Securities, global construction equipment sales are expected to rebound next year, with China, which has seen significant adjustment pressures, likely to lead the recovery. Previously, excavator sales in China rebounded by 12% last year, with a further increase of 38% in the first quarter of this year (January to March).