May 02, 2024

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[THE INVESTOR] Hyundai Construction Equipment widely beat market consensus in the first quarter, said KB Investment and Securities on May 3, maintaining a “buy” recommendation and raising the target price to 235,000 won (US$217.92) from 215,000 won.

Its operating profit in the period leapt 45.07 percent on-year to 61.8 billion won and revenue by 44.40 percent to 930.5 billion won, according to the firm’s earnings report.

The excavator market is swelling as the economy recovers and many countries, including China, invest more in infrastructure. Outsourcing manufacturing of forklifts, backhoe loaders and smaller excavators while focusing on higher-margin large excavators also has been effective, explained analysts Jeong Dong-ik and Chang Mun-jun.

Sales in China, India and Russia in the first quarter spiked 106 percent, 44 percent and 71 percent, respectively, from the same period last year, and will continue to remain strong, according to the analysts. 

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