IBK Securities said on the 9th that HD Hyundai Electric is expected to continue delivering strong results on the back of high-margin gains in North America. It raised its target price by 87% to 1.05 million won. The previous session's HD Hyundai Electric share price was 840,000 won.
Earlier, HD Hyundai Electric said that on a consolidation basis, fourth-quarter revenue came to 1.1632 trillion won and operating profit to 320.9 billion won last year. That was up 42.6% and 93%, respectively, from a year earlier. It beat market expectations for revenue (1.1396 trillion won) and operating profit (281.2 billion won).
By region, North America revenue was 554.5 billion won, up 205% from a year earlier. Middle East revenue was 196 billion won, down 23.4% from a year earlier. Europe revenue was 128.3 billion won, up 64.1%.
Kim Tae-hyun, an analyst at IBK Securities, said, "As demand grows for building transmission networks related to data centers in the United States, sales across power equipment, including transformers, were strong," and noted, "With an expansion in deliveries of high-margin power equipment bound for North America, the company achieved a record quarterly performance."
Kim projected HD Hyundai Electric's revenue and operating profit this year at 4.9987 trillion won and 1.3011 trillion won, respectively. Those figures represent increases of 22.5% and 30.7% from a year earlier. Kim also expected order intake to exceed $4.27 billion in 2025.
Kim said, "With a favorable, supplier-dominant industry cycle continuing, considering the capacity expansions at the Ulsan plant in 2027 and the Alabama, United States, plant in 2028, medium- to long-term growth potential remains high," and raised the target price-to-earnings ratio (PER) to 36.2 times from 25.4 times.