Shinhan Financial Investment expects Kolon Plastic's best performance in the third quarter of this year. This is based on the calculation that earnings will continue to improve due to price hikes caused by tight supply and demand despite rising raw materials and freight rates.
The investment opinion was maintained 'buy' and the target price was raised to 11,000 won.
"We have raised the target stock price return ratio (PER) to 16 times," Shinhan Investment said on the 2nd. "The average PER in 2016-2018, when the selling price was raised due to the past business boom, is 17 times, and the current stock price is only 11 times based on performance between 2021 and 2022.".
Shinhan Financial Investment also said, "It is expected that stock prices will be able to be re-rated due to improved performance through higher sales prices and multiple increases due to the expansion of eco-friendly car materials.".
Kolon Plastic's third-quarter sales and operating profit, expected by Shinhan Financial Investment, were KRW 118.4 billion and KRW 10.5 billion, respectively.
In this case, it is an increase of 18% and 27% compared to the last quarter, and it is the highest performance ever. In particular, sales of the polyoximethylane (POM) division are expected to rise 30% to 71.1 billion won compared to the previous quarter.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
