Doosan Bobcat, Q is good. Margin to recover in the second half of next year (Shinhan Financial Investment)

Shinhan Financial Investment offered its investment opinion "buy" and target stock price of 46,000 won for Doosan Bobcat.

Regarding the lowering of the target stock price, Shinhan Investment said, "We applied 11.2 times Target PER (20% discount on global peer on average) to EPS 4,124 One 12 months earlier," adding, "There is uncertainty over the timing of margin expansion due to increased costs stemming from renegotiation of the purchase price of back-end plates in the fourth quarter of 2021.".

Doosan Bobcat's third-quarter earnings reached $ 1.34 billion in sales and $ 1.1 billion in operating profit (-12.7 percent, -7.5 percent in won 1,296).

It is a performance that corresponds to 1,199 billion won in operating profit compared to market expectations. The newly incorporated Doosan Industrial Vehicle Division recorded sales of $ 230 million (-8.8%) and operating profit of $ 2 million (-81.0%).

The operating profit ratio of industrial vehicles fell to 0.9% (-3.5%p) due to the increase in container ship fares. Sales in the existing business sector were similar to the previous quarter (-2.7%), but operating profit fell 14.3%.

Although the selling price was raised twice in the first half of the year, the securities firm analyzed that the profit margin was damaged because there was a time difference until the sales of the selling price was reflected and the prices of raw materials and logistics rose further even after the increase in the selling price.

"The cumulative construction of U.S. homes grew to 121.4 million in September," Shinhan Financial Investment said. "The amount of pre-construction permits increased 33.7 percent from the beginning of the year.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com