April 25, 2024

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[THE INVESTOR] Hankook Tire’s new factory in Tennessee that will start operating this year will propel its expansion in the US market that imports tires worth US$9 million annually, said Shinhan Financial Securities on Jan. 16. 

The securities firm raised its target price to 80,000 won (US$67.94) from 70,000 won. 

As North America has more demand for bigger tires with a higher margin, the tire maker’s profitability will improve, said analyst Jeong Yong-jin.
Global leaders Bridgestone and Goodyear, as well as Taiwan’s Cheng Shin, have announced price hikes earlier this year, and it will have positive effect on South Korean tire makers, added the analyst.

The country’s largest tire maker will see its revenue grow 5.9 percent to 7.1 trillion won this year while its operating profit will slip 1.4 percent to 1.1 trillion won. However, its operating profit margin ratio will reach 15.7 percent, according to Jeong. 

By Hwang You-mee (glamazon@heraldcorp.com)