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[Alpha Biz=(Chicago) Reporter Paul Lee] Hana Securities lowered its investment opinion to "neutral" on the 10th, saying that Hanon System's third-quarter earnings fell far short of expectations and its valuation (value of Valuation· companies) was not attractive. The target stock price was also lowered from 12,000 won to 8,000 won. Hanon System shares closed at 7,510 won on the stock market the previous day.
Hanon System recorded consolidated sales of 2.3274 trillion won and operating profit of 20.3 billion won in the third quarter of this year. It was about 70% lower than the market's expected operating profit. Sales of finished car customers such as Hyundai Motor Group, Ford, Volkswagen, and General Motors (GM) increased, but their operating profit ratio fell 5 percentage points from the previous quarter due to increased logistics and labor costs. Quarterly dividends also fell to 68 won in the third quarter from 90 won.
"Its performance in the fourth quarter and 2024 will improve quarterly because its third-quarter earnings were so sluggish, but even considering this, it is not very attractive at 14 times the PER," said Song Sun-jae, a researcher at Hana Securities Co.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
