HD Hyundai Marine Engine: "Severely Undervalued" [Click e-Stock]

Sangsangin Securities Lowers Target Price
from 130,000 Won to 100,000 Won

Sangsangin Securities maintained its "Buy" rating on HD Hyundai Marine Engine on July 16, while lowering its target price from 130,000 won to 100,000 won.

Seo-Yeon Lee, a researcher at Sangsangin Securities, stated, "We are revising down the target price due to a multiple adjustment," and added, "It is true that HD Hyundai Marine Engine's business portfolio, which is centered on two-stroke low-speed engines, lacks momentum for new engine demand destined for DC compared to competitors. However, its stable fundamental growth based on a solid order backlog remains intact. With the recent stock price correction, its valuation appeal has grown even further."

Lee also projected that HD Hyundai Marine Engine's second-quarter results would meet market expectations, estimating sales at 148.5 billion won and operating profit at 36.4 billion won. These figures represent a 50% and 109% increase year-on-year, respectively. Although the number of engines delivered in the second quarter may slightly decrease, ongoing improvements in the product mix and a higher average selling price (ASP) are expected to support continued margin growth.

In the parts segment, the turbocharger utilization rate has increased compared to the previous quarter, which should contribute to the company's performance. In addition, given its flexible foreign exchange hedge policy, HD Hyundai Marine Engine is expected to benefit from the current high exchange rate environment.

This content was produced with the assistance of AI translation services.