Equity Analysis /
South Korea

KR : Hankook Tire & Technology - Big hit tyres

    Kyung Jae Hwang
    Kyung Jae Hwang

    Head of Regional Offshore & Marine

    5 April 2021
    Published byCGS-CIMB

    The Seoul Economic Daily reported today that HKT won new OE contracts from China’s Nio for its ES6/EC6, a sizeable order win for an EV model. The proportion of Chinese brands in HKT's OE tyre sales sharply rose to 5% recently while it now commands 10% market share for RE tyres in China. We believe the rising sales contribution from high-priced EV/RE tyres is a positive earnings catalyst in the longer term. We project W178bn 1Q21F EBIT vs. Bloomberg consensus’s W165bn.