April 19, 2024

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[THE INVESTOR] Hankook Tire will continue to post slow growth in the first half of this year, said Hana Financial Investment on March 29, maintaining a “neutral” rating and 63,000 won (US$56.58) target price. 

Its operating profit in the first quarter will be lower than market expectations, according to analyst Song Seon-jae. Although the large orders are coming in before prices are hiked, the euro conversion rate is negative and the cost of major raw materials has risen sharply, said the analyst.
 
The price hike will begin in May but in phases in most regions, and it will be after the third quarter when its effect will be fully reflected, forecasted Song.
So investors should take a mid- to long-term approach with eyes on the latter half, when the price hike is reflected globally and the operation ratio of its US plant rises adequately, said the analyst. 

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