SK Securities said on the 25th that Hankuk Carbon is expected to grow on the back of strong shipbuilding exports. It raised its target price to 58,000 won from 44,000 won while maintaining a "Buy" investment rating. The previous trading day's closing price of Hankuk Carbon was 41,500 won.
Last year, Hankuk Carbon posted revenue of 231.8 billion won and operating profit of 38.3 billion won. Those figures were up 19.4% and 120%, respectively, from the same period a year earlier.
Han Seunghan, an analyst at SK Securities, said, "This quarter's solid results reflect favorable foreign exchange effects; increased shipments of China-bound SB (Secondary Barrier) compared with the previous quarter; a narrower loss at the consolidation subsidiary; stabilization of enterprise resource planning (ERP); and cost savings from inventory management and expense control."
These factors are continuing, and with the boost from higher average selling prices (ASP), the company is expected to post quarterly results this year that surpass the fourth quarter last year.
Han forecast Hankuk Carbon's full-year revenue at 979.5 billion won and operating profit at 171.7 billion won.
Han said, "Following the White House's announcement of the American Marine Action Plan (AMAP), the push to approve the 'SHIPS for America Act' has strengthened, and if the bill passes, expectations for Hankuk Carbon's entry into the U.S. market will rise, serving as a factor for multiple expansion," adding, "We present it as the top pick among shipbuilding equipment stocks, as we are optimistic on orders, results, and momentum this year across all three dimensions."