[THE INVESTOR] Kumho Petrochemical will improve next year, said Hana Financial Investment on Dec. 19, maintaining a “buy” recommendation and raising the target price to 150,000 won (US$137.84) from 115,000 won.
Boosted by strong demand and closing down of its rival Shell’s manufacturing facilities, Kumho P&B’s operating profit next year will soar 324 percent from this year, said analyst Yoon Jae-seong.
The operating profit of its synthetic resin sector will hike 52 percent on the back of high demand, noted the analyst. Rising demand for tires will push the operating profit of synthetic rubber up 150 percent from this year, he added.
Its operating profit in the fourth quarter will surge 270 percent on-year to 81.0 billion won, widely beating market consensus, and in 2018 will reach 470.9 billion won, the highest in seven years, estimated the analyst.
By Hwang You-mee (firstname.lastname@example.org)