SK Securities analyzed on the 3rd that Dongsung Finetec is expected to improve its performance due to the stabilization of material prices and has also raised expectations for expansion into the United States. It adjusted its target price upward from 17,000 won to 43,000 won while maintaining an investment opinion of 'buy.' The closing price of Dongsung Finetec on the previous trading day was 31,650 won.
SK Securities projected Dongsung Finetec's sales and operating profit for this year to be 749.3 billion won and 69.4 billion won, respectively. For next year, it estimates that the figures will reach 807.2 billion won and 95.2 billion won.
Han Seung-han, a researcher at SK Securities, explained, "Dongsung Finetec is expanding orders for insulation materials used in fuel tanks of liquefied natural gas (LNG) dual fuel vessels for Chinese shipbuilders, and it has considerable experience supplying insulation materials for land-based LNG facilities compared to its competitors."
One researcher noted, "The price stabilization trend for major materials and supplies, methylene diphenyl diisocyanate (MDI), has continued since the second half of last year, and this trend is expected to last until next year, suggesting that performance improvement will be maintained both this year and next year."
He also said, "Considering that the average selling price (ASP) of the single supply contract for insulation materials signed with a competitor this year has actually increased, the potential for ASP contracts that the company will win in the future is limited."
He added, "There is sufficient room for stock price growth due to top-line growth through LNG-powered vessels and land-based LNG facilities, as well as expectations for expansion into the United States."