"With Easing Cost Pressures, Hankook Tire's Growth Deserves Attention" [Click e-Stock]

DB Financial Investment Raises Hankook Tire & Technology Target Price
from 83,000 Won to 88,000 Won

On August 13, DB Financial Investment maintained its "Buy" investment rating on Hankook Tire & Technology and raised its target price from 83,000 won to 88,000 won.

Nam Jooshin, a researcher at DB Financial Investment, stated, "Despite cost pressures stemming from higher raw material and shipping rates in the third quarter, the impact on margins will be limited due to price increases. Starting in the fourth quarter, we expect the company to maintain solid earnings capability on the back of easing cost pressures, an increased proportion of high-inch and electric vehicle (EV) tires, and a higher market share in Europe."

Nam projected that cost pressures would gradually decrease. He explained, "The impact of the sharp increase in raw material prices in the second quarter will be reflected in the third quarter with a time lag, resulting in higher costs. However, raw material input costs are expected to peak around August." He added, "Since a 5% price increase for the Middle East in June and ongoing 2-4% price increases in major regions through September, much of the cost increase is expected to be offset." He also predicted that although transportation costs have risen compared to the first half, cost burdens could ease through renegotiation if shipping market conditions deteriorate.

Nam emphasized that, in the medium to long term, attention should be paid to improving the high-inch·EV mix, expansion of local production in North America via Tennessee plant expansion, and increasing market share by leveraging low anti-dumping tariffs in Europe.

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