[THE INVESTOR] Hyundai Mipo Dockyard is estimated to have suffered an operating loss in the fourth quarter last year, KB Investment and Securities said Jan. 3, maintaining a “hold” recommendation and lowering its target price to 95,000 won (US$89.26) from 115,000 won.
Its recent regulatory filing showed that its operating profit in 2017 was 79.0 billion won. Factoring in its accumulated operating profit until the third quarter and resorting earnings from HI Investment and Securities, which is earmarked for a sell-off, analyst Jang Mun-jun estimated its operating loss from the fourth quarter at 38.1 billion won.
Its revenue this year will rise 15.4 percent from last year to 2.80 trillion won but operating profit will fall 31.8 percent to 53.3 billion won, he estimated.
It was the only major shipbuilder that saw a rise in shipbuilding volume, having won new orders worth US$2.31 billion last year, up 153.8 percent on-year, the analyst pointed out, adding that it will be able to minimize damage to its profits through a number of cost-cutting effects.
By Hwang You-mee (email@example.com)