Equity Analysis /
South Korea

KR : Hankook Tire & Technology - Let the good times roll

    Kyung Jae Hwang
    Kyung Jae Hwang

    Head of Regional Offshore & Marine

    20 January 2021
    Published byCGS-CIMB

    We project 4Q20F revenue of W1.8tr (+7% yoy), and EBIT of W201bn (+71% yoy, 11.3% OPM) vs. consensus’ W177bn on solid overseas RE tyre volume. Firm pent-up demand from customers waiting for new EV launches in FY21-23F are leading to longer-than-expected ownership of the current ICE fleet. Reiterate Add and SOP-based target price of W50,000.