Hyundai Motor Securities said on the 4th that HanmiGlobal(053690) is expected to post steadily improving earnings on the back of recovering orders at domestic and overseas divisions, a boom in the high-tech division, and expanding momentum in semiconductors, data centers, and nuclear power. It maintained a buy rating and a target price of 29,000 won. The previous session's closing price was 21,700 won.
Shin Dong-hyun at Hyundai Motor Securities said, "The domestic division is showing a continued increase in order backlog, backed by a moderate recovery in the real estate cycle and new demand entering the redevelopment market," and added, "As increased investment in data centers translates into actual order growth, the company is expanding domestic and overseas data center bids based on its track record of performing PM for domestic and overseas hyperscalers."
The high-tech division is also seen as directly benefiting from capacity additions at semiconductor fabs.
Shin said, "We are participating as the PM firm in all new plants of major companies, and given the nature of the business, orders and revenue will continue until completion," adding, "The current backlog does not fully reflect the boom cycle."
In the case of the Saudi subsidiary, it logged weak results due to revenue adjustments from relocating its site to Riyadh in the first half and the impact of war, but if a mood for an end to the war takes shape, revenue is expected to resume immediately.
Shin said HanmiGlobal's annual operating profit will decrease year over year as the accounting treatment of operating expenses for treasury shares paid to the Workers' Welfare Fund in the first quarter is reflected. However, excluding this, he noted that underlying operating profit is continuing to grow along with revenue.
Shin said, "There are some negative factors on the profit side, such as the temporary weakness at the Saudi subsidiary, but the company is broadly expanding into areas the market is focused on, including semiconductors, data centers, and nuclear power," adding, "There is no need to lower the bar for the multiple."