[THE INVESTOR] KCC has widely missed third-quarter earnings expectations, said Hanwha Investment and Securities on Nov. 6 lowering the target price to 330,000 won (US$294.01) from 470,000 won.
Its revenue fell 9.7 percent on-year to 931.3 billion won and operating profit by 27.6 percent to 76.9 billion won. It suffered from the pressure of front industries as housing transactions declined and automobile sales slowed down. In the fourth quarter commodities price will continue to rise while waning number of new apartments will inevitably shrink revenue, said analyst Song Yu-rim.
As investor sentiment in construction material industry has been dwindling due to recent earnings disappointments, it seems unlikely that its stock price will recover sharply, she added.
By Hwang You-mee (firstname.lastname@example.org)