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(Photo= Yonhap news) |
[Alpha Biz= Reporter Paul Lee] On the 7th, Kiwoom Securities announced that it has raised its target price for KCC to 400,000 won, reflecting improved fundamentals, which is 33% higher than the previous target.
Kiwoom Securities explained, "In the first quarter, KCC announced earnings surprises, with sales of approximately 1.59 trillion won and operating profit of 106.7 billion won, exceeding our estimated operating profit by 30.9% and market consensus by 39.1%."
They further stated, "The first quarter is considered an off-season for the raw materials and paint sectors. However, it appears that profitability improved due to the sustained strong margins in the paint sector and the continued weakness in PVC, the main raw material of the raw materials sector, along with the expansion of overseas paint sales with relatively high margins."
Kiwoom Securities continued, "Considering the nature of organic silicone products used in various industries, it is expected that the downturn will continue in 2024 depending on the macroeconomic conditions. However, it is estimated that profitability in the organic silicone sector improved significantly in the first quarter due to internal efficiency improvement efforts."
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
