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THE INVESTOR
April 04, 2020
Big Reunion

Stocks & Bonds

[EQUITIES] ‘Hankook Tire Worldwide’s profits wane’

  • PUBLISHED :November 21, 2018 - 10:52
  • UPDATED :November 21, 2018 - 10:52
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[THE INVESTOR] Hankook Tire Worldwide’s profits are likely to decline, said NH Investment and Securities on Nov. 21 downgrading the recommendation to a “hold” from a “buy” and lowering the target price to 19,000 won (US$16.77) from 22,500 won.




Following the shift to a holding company, it has announced plans to promote growth potential through diversification, but the plan is yet to be realized and its return on equity remains low. It will be reevaluated only after successful diversification or a meaningful change in its shareholder returns policy, said analyst Cho Su-hong.

Dragged down by slow growth of Hankook Tire and storage battery unit, the company’s revenue in the third quarter fell 11.9 percent on-year to 194.1 billion won and operating profit by 17.8 percent to 47.5 billion won missing market expectations. Its battery unit was not only weighed down by commodity price rise and unfavorable exchange rate, but also majorly undermined by fewer working days due to Chuseok holidays. It is likely to recover in the fourth quarter, added the analyst.

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

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