April 25, 2024

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[THE INVESTOR] Hyundai Rotem is likley to turnaround this year although it failed to meet earnings expectations in the fourth quarter last year, said KB Investment and Securities on Jan. 19, lowering the target price to 22,500 won (US$21.04) from 25,000 won.

Its revenue fell 17.9 percent on-year to 702.6 billion won and operating profit by 77.3 percent to 6.5 billion won, below market consensus, as there has been a delay in reflecting revenue from some overseas railway projects and the won-dollar exchange rate has been unfavorable, said analysts Jeong Dong-ik and Jang Mun-jun. 

It is time to watch out for a turnaround, however, as design for a large project won in 2016 has been completed and revenue will be reflected in earnest this year, said the analysts maintaining a “buy” recommendation. 

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