April 25, 2024

• 

[THE INVESTOR] Hyundai Rotem will make losses in the first quarter but rebound, said Shinhan Financial Investment on April 13, raising the target price to 23,000 won (US$20.38) from 20,000 won.

Its operating profit in the period will widely miss market expectations, doen 75.9 percent on-year at 7.4 billion won, according to analyst Hwang Eo-yeon. Revenue will slip 1.3 percent to 714.9 billion won and the company will post a 15.6 billion won net loss, estimated the analyst.

The major factor affecting its earnings is the weak exchange rate, but from the next quarter there will be an uptick, said Hwang. 

Orders for its railway division which were strong last year rose 29.9 percent on-year in the first quarter to 1.1 trillion won. The underperforming projects will recover and overseas orders will boost earnings this year, noted the analyst. 

However, its stock price is higher than that of its global competitors, said Hwang and maintained a “trading buy” recommendation.

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