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[Alpha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities Co. raised its target share price to 68,000 won from the previous 43,000 won on the 22nd, saying it has ample room for a rise in stock prices if article results from its new business are released. The investment opinion remained 'buy'.
Its fourth-quarter earnings are expected to reach 8.24 trillion won in sales and 252.5 billion won in operating profit, slightly below market expectations for both sales and operating profit. Compared to the same period last year, sales were estimated to decrease by 9.6% and operating profit would increase by 49.6%.
Regarding the outlook for poor performance, Shinhan Investment & Securities explained, "This is because we expect to achieve weaker-than-expected performance in steel trading (global), Myanmar's gas field and power generation (energy)."
"In steel trading, operating profit is expected to be slightly smaller than in the third quarter due to the implementation of major steel consumers' year-end inventory management policy," Shinhan Investment & Securities said. "In Myanmar's gas field, falling selling prices and falling sales due to stabilizing oil prices are expected to affect its sluggish performance at the same time." He also added, "It will be inevitable that profits in the power generation sector will remain sluggish due to the fall in the system limit price (SMP)."
Next year's earnings are expected to reach 37.7 trillion won in sales and 1.15 trillion won in operating profit, up 12.8 percent from a year earlier and down 4.3 percent in operating profit.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
