[THE INVESTOR] Hanon Systems will gain from taking over Magna International’s fluid pressure and controls business, said KB Investment and Securities on Sept. 21, maintaining a “buy” recommendation and 15,000 won (US$13.43) target price.
Operating 10 manufacturing facilities and nine engineering centers, this division sells heat-controlling and pump products to help improve fuel efficiency and reduce emission to carmakers Volkswagen, Daimler, GM, Ford and FCA, said analyst Kang Seong-jin.
This acquisition will boost Hanon’s earnings per share up 22.7 percent. The acquired division’s operating profit is projected to be US$130 million next year. There is a need to review the estimates and appraise the synergies with existing business before adjusting the target price, said the analyst.
By Hwang You-mee (email@example.com)