Shares of HD Hyundai Energy Solutions have continued to decline for a second consecutive day after the company's third-quarter earnings fell short of market expectations. Analysts have also adjusted their target prices downward in response to the disappointing results.
As of 1:13 PM on the Korea Exchange, HD Hyundai Energy Solutions was trading at 85,900 won, down 10,400 won (10.80%) from the previous trading day. The stock opened at 90,000 won and briefly dropped to 84,800 won during the session.
On the previous day, the stock closed at 96,300 won, marking a 10.34% decline from the prior trading day. This marks two consecutive days of double-digit losses.
The decline in stock price is attributed to the company's third-quarter earnings significantly missing market expectations. HD Hyundai Energy Solutions reported an operating profit of 20.4 billion won for the third quarter, a 39.0% increase compared to the same period last year. However, this figure fell approximately 41% short of the market forecast of 34.9 billion won.
Analysts have been adjusting their earnings forecasts and lowering target prices. Kyobo Securities noted in a report that the primary reason for the poor performance was currency fluctuations, reducing its target price to 184,000 won.
In the report, Kyobo Securities stated, "The underperformance is largely due to currency issues. Without currency hedging, the average quarterly exchange rate fell from 1,502 won to 1,418 won, decreasing the won-denominated revenue from dollar sales. Additionally, raw materials purchased at high exchange rates in the second quarter were reflected in the third-quarter costs."
DS Investment & Securities also lowered its target price to 170,000 won. The firm suggested that a short-term rebound in stock prices could occur if a Blue Wave materializes in the upcoming U.S. midterm elections in early November. However, it emphasized that significant stock price increases would depend on the expansion of domestic production facilities and the reflection of this in the 2027 business plan.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.