Shinhan Financial Investment offered its investment opinion "buy" and target stock price of KRW 11,000 for Kolon Plastic.
Shinhan Financial Investment explained that the average PER in 2016-18, when the selling price was raised due to the past industry boom, is 17 times, and the current stock price is only 11 times (13 times the average of global EP companies) based on performance in 21-22.
In the meantime, it is predicted that stock price re-rating will be possible due to performance improvement through price increase and multiple increase due to expansion of eco-friendly car materials.
Shinhan Financial Investment expects Kolon Plastic's third-quarter sales and operating profit to reach 1,184 billion won and 10.5 billion won (+27%), respectively.
"The improvement in performance is expected to continue due to rising selling prices stemming from tight supply and demand despite rising raw materials and freight rates," Shinhan Investment said. "The POM division's sales are expected to be KRW 71.1 billion (+30%).".
Reporter Lee Dong-hoon email@example.com