April 25, 2024

• 

[THE INVESTOR] Hankook Tire has missed earnings expectations in the second quarter, said Eugene Investment and Securities on Aug. 3, lowering the target price to 50,000 won (US$44.33) from 55,000 won while maintaining a “hold” recommendation. 

Its operating profit fell 10 percent to 183.3 billion won, 5.8 percent below market consensus, as overseas sales failed to offset slow domestic sales. Improvement in US sales was also slower than expected. Revenue in the third quarter will reach 1.8 trillion won with operating profit of 231 billion won. But the advance in this period is more from low-baseline effect rather than having entered an upcycle, said analyst Lee Jae-il.

In the latter half, sales of new cars in the US and China are likely to slow down weighing down the demand for tires, said the analyst lowering the target price to reflect decline in valuation of its global peers. 

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