Heungkuk Securities raised its investment opinion on Donghwa Enterprise to 'Buy'. The securities firm raised the target price to 80,000 won, up 100% from the previous 40,000 won.
The securities raised its first quarter estimate by 15%. Sales estimate was raised to 193.2 billion won (+5.7% year-over-year) and operating progit estimate was adjusted to 19.9 billion won (+45.3%) for the quearter. The basis for the upward revision of profit estimates is MDF and PB.
The starting point for the recent rise in Donghwa Company's stock price is the settlement of lawsuits between SK Innovation and LG Chem. Donghwa Electrolite (formerly PanaxETech), a subsidiary of Donghwa Corporation, is currently supplying electrolyte to Samsung SDI batteries.
On top of that, battery electrolytes will be supplied to SK Innovation. The Hungarian plant (20,000 tons) is scheduled to be completed in the first half of this year and the U.S. battery plant will be completed in 2022.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
