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[Alpha Biz=(Chicago) Reporter Paul Lee] KB Securities predicted on the 3rd that HD Hyundai Infracore will perform poorly due to a drop in construction machinery sales in major areas of construction and machinery. The target price fell from 11,000 won to 10,000 won, and the investment opinion 'buy' was maintained.
HD Hyundai Infracore is estimated to have sales of 1.112 trillion won and operating profit of 65.3 billion won in the fourth quarter of 2023. This is 6.0% and 17.9% below the consensus, respectively.
"In the construction and machinery sectors, sales will plunge 16.5% year-on-year due to the overall market slowdown in China, South Korea and other emerging economies," KB Securities said. "Due to a drop in sales, rising costs and seasonal costs, operating profit in the construction and machinery sectors will also fall 44.7% to 23.8 billion won."
KB Securities said, "In October and November, domestic sales of Chinese excavators fell 44.4% year-on-year," adding, "In October, domestic sales of Korean excavators also fell 37.6%."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
