April 26, 2024

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[THE INVESTOR] Kumho Petrochemical beat market consensus in the second quarter, said Hyundai Motor Investment and Securities on Aug. 6, raising the target price to 153,000 won (US$136.02) from 140,000 won.

Boosted by strong sales of phenol derivatives and synthetic rubber, its revenue gained 16.4 percent on-year to 1.4 trillion won and operating profit by 247.5 percent to 153.5 billion won. In the third quarter, improvement in phenol derivatives and power generation sectors will offset revenue decline from synthetic rubber and synthetic resin from the previous quarter. 

Earnings will remain at the level of second quarter. Further increase in spread of phenol derivatives will be reflected and rise in operation ratio in power generation unit will lift its bottom line, said analyst Kang Dong-jin.

Overall advance in fundamentals will bolster its stock price rise with time, he added.

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