[THE INVESTOR] Hanon Systems has failed to meet third-quarter earnings expectations, said eBEST Investment and Securities on Nov. 14 lowering the target price to 13,000 won (US$11.48) from 15,000 won.
Weighed down by low season and depreciation of lease assets, its operating profit in the period fell 18.6 percent on-year to 81.9 billion won, missing 104 billion won market consensus. As Europe strengthens gas emission regulations, supplies to Volkswagen have declined by double digits, while Ford’s struggle in China undermined its profits, said analyst Yoo Ji-woong.
Investors have lowered their expectations for automobile parts industry due to a number of unfavorable and uncertainties but synergy effects from acquisition of Magna’s fluid pressure and controls unit will begin to show from the second quarter next year, he said.
By Hwang You-mee (email@example.com)