▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Hanjin KAL dragged down by airline subsidiaries’

  • PUBLISHED :July 20, 2018 - 11:30
  • UPDATED :July 20, 2018 - 11:30
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] Hanjin KAL’s airline subsidiaries will record slow earnings, said Daishin Securities on July 20, lowering the target price to 26,000 won (US$22.92) from 30,000 won.




Its operating profit in the second quarter will drop 29.8 percent on-year to 13.6 billion won and net losses for stakeholders will reach 62 billion won, said analyst Yang Ji-hwan.

The major factor of the slow earnings will be related to Jin Air, a subsidiary on a consolidated basis, and Korean Air, a subsidiary accounted through the equity method, as they struggle from jet fuel price rise and a weak Korean won, according to the analyst. 

The outcome from hearings regarding the cancellation of Jin Air’s license also is a crucial factor and its stock price is unlikely to rebound until the conclusion is made at the end of August, he said. 

The odds are slim, though, that the low-cost carrier’s license will be canceled or its business immediately suspended, said Yang, maintaining a “buy” recommendation. 

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

EDITOR'S PICKS