Submitted2024.05.04 08:33
Edit2024.05.04 08:45
Operating profit down 93% compared to the previous year… Revival of electric vehicle growth is also ‘difficult’
HD Hyundai Heavy Industries, ‘pillar of fire’ due to ‘exceptional’ growth expectations despite earnings shock
Photo = Getty Image Bank Ecopro BM suddenly fell even after reporting first-quarter performance that significantly exceeded consensus (average estimate of securities firms). On the other hand, HD Hyundai Heavy Industries recorded an operating profit that was less than 30% of what was expected, but it has increased by more than 10% since entering April. Stock price is against performance Why does this trend happen?
Both inside and outside the market, growth potential is evaluated as the difference between good and bad in a stock’s price. While Ecopro BM put up a performance that was a big step back compared to a year ago, HD Hyundai Heavy Industries turned into a surplus. According to the financial information company FnGuide, of the 254 stocks on which a consensus was formed based on the estimates of three or more security companies, a total of 100 stocks have announced their first quarter earnings as of May 2. Among them, there were 41 ‘earnings surprise’ stocks whose operating profit exceeded the consensus estimate on April 1 by more than 10%, and 38 ‘earnings shock’ stocks whose operating profit fell more than 10% below.
The stock price movement this earnings season generally showed the same direction as performance. Among the earnings surprise stocks, there were only eight whose closing prices on May 2 fell by more than 5% compared to the closing prices on April 1. Among the earnings shock stocks, there are five whose stock prices rose by more than 5%. During this period, KOSPI fell 2.34%. First quarter operating profit was KRW 6.684 billion, exceeding the consensus (KRW 1.688 billion) by 295.97%. Even before the earnings release, the consensus had shifted to a deficit. Although performance exceeded expectations by a wide margin, stock price performance was sluggish. On the 3rd, immediately after the earnings announcement, the KOSDAQ index fell by 3%. This is due to a large negative growth. Ecopro BM’s operating profit in the first quarter was down 93.8% compared to a year ago.
The sluggish performance is expected to continue into the second quarter. In a conference call held on the 3rd, EcoPro BM’s parent company, EcoPro, said, “The fixed cost burden has increased due to a reduction in volume due to a slowdown in demand in the upstream market (electric vehicle market),” and “performance will remain sluggish into the second quarter.”
Concerns about slow growth are already weighing on stock prices. Ecopro BM stock price fell by 14.96% from April to the 2nd of this month. This is because sales of Tesla vehicles, which are considered a barometer of the electric vehicle industry, were slow. HD Hyundai’s operating profit in the first quarter also exceeded the consensus by 38.58%, but its stock price fell 10.57% from the beginning of April to the 2nd of this month. Here is an example of a stock price falling due to various events. It collapsed in mid-April as a result of the IPO of HD Hyundai Marine Solutions, a ship maintenance and repair subsidiary. Later, at the end of April, when military tensions rose in the Middle East, it was recognized as an ‘oil stock’ and its stock price went up. After the release guide ‘Corporate Value Enhancement Plan’ was announced on the 2nd of this month, stock prices fell due to disappointment Data = F&Guide Data Guide On the other hand, HD Hyundai Heavy Industries, a major shipbuilding group HD Hyundai, seen. The stock price rose by 15.42%. Operating profit for the first quarter was 21.3 billion won, 71.2% lower than the consensus (74 billion won). However, compared to the same period last year, it turned into a surplus.
The security industry focused on growing the ‘special lines’ sector as a new growth engine. Recently, a contract was signed to supply construction materials and equipment for four Peruvian ships, and a business agreement (MOU) was signed with the US Philly Shipyard to cooperate in projects related to government ships and warships. Jeong Yeon-seung, a researcher at NH Investment & Securities, said, “Maintenance and repair pilot projects related to US warships are expected to be seen, and there are also opportunities for export surface vessels, ” says, “The valuation could expand as the specialty container industry expands.” He raised the target stock price from 150,000 won to 180,000 won through HD Hyundai Heavy Industries’ first quarter performance review (analytics) report, which fell far short of expectations.
Reporter Han Kyung-woo, Hankyung.com case@hankyung.com
2024-05-03 23:33:21
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