[THE INVESTOR] Hyosung
has failed to meet third-quarter earnings prospects, said Hana Financial Investment on Nov. 10, lowering the target price to 170,000 won (US$152.08) from 200,000 won.
Operating profit dropped 31 percent on-year to 170.7 billion won, 27 percent lower than market consensus, due raw materials price hike, said analyst Yoon Jae-seong. The heavy industry unit suffered from both slow sales and electrolytic copper price rise, he added.
A total of 40 billion won one-off costs of affiliates, including 25 billion won bad debt expense for Nautilus Hyosung, has also dented its earnings, said the analyst.
Yoon maintained a “buy” recommendation, but said that that textiles, heavy industries and trade sectors will begin to improve in the fourth quarter.
By Hwang You-mee (email@example.com