April 24, 2024

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[THE INVESTOR] Hankook Tire’s earnings will recover in the second half of this year, said Mirae Asset Daewoo on Feb. 6, suggesting a “buy and hold” approach.

The tire maker’s fourth-quarter operating profit last year missed the market consensus by 10 percent, and both its revenue growth and recovery rate did not meet the expectations, said analyst Park Yeong-ho. The average sale price fell and exchange rate was negative while sales and administration costs rose, he added.

“The commodity price hike will be reflected in this half and the profit margin will fall. However, in the latter half, the raw materials price will stabilize and revenue will improve as the sale price stabilizes,” said the analyst forecasting that its annual revenue will increase at 9.2 percent until next year. 

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