The petrochemical industry is struggling to recover, scrambling to secure growth drivers in specialty areas. In response to China’s expansion of its self-sufficiency rate, they are trying to secure market competitiveness by focusing on high-value-added products. In particular, they are actively fost
Kumho Engineering and Construction (E&C) announced on April 26 that it held a groundbreaking ceremony for the Gumi Natural Gas-Fired Power Plant in Gumi High-Tech Valley, North Gyeongsang Province, on April 25. The power plant will be the nation’s first natural gas-fired power plant to replace coal
Kumho Tire picked up the Winner Prize in the concept category of Germany’s International Forum Design Award 2023.The iF Design Award is an international design competition that was first held in 1954 and celebrates its 70th anniversary this year. It has a jury of 133 experts from around the world.Th
Samsung Electronics’ Q1 earnings announcement is scheduled for April 7. Securities firms' operating profit forecast is 720.1 billion won (US$547.3 million), down 94.9 percent year on year. This is the first time in 14 years that the Q1 profit estimate is less than 1 trillion won.SK Hynix posted
Kumho Tire announced on March 10 that the governor of the state of Louisiana in the United States visited its headquarters.An Asian trade delegation led by Governor John Bel Edwards visited Kumho Tire’s headquarters in Seoul and met with Kumho Tire’s management. Kumho Tire CEO Jeong Il-taek, Vice Pr
Kumho Tire will supply Crugen EV HP71 as an original equipment (OE) to Volkswagen's pure electric SUV model 'Volkswagen ID.4’. Volkswagen ID.4 ranked first among European-branded electric vehicles (as of 2022) in 10 major European countries, including Germany, thanks to its high price compet
Kumho Tire announced on Dec. 6 that it has obtained a silver medal from Ecovadis, a global ESG evaluation agency. The tire company has also won an overall B+ rating from the Korea Institute of Corporate Governance and Sustainability (KCGS).Ecovadis is an ESG evaluation platform in France. It is used
Kumho Tire lost an ordinary wage lawsuit in Gwangju on Nov. 16. The suit was filed by five former and current employees and the court told the company to pay them 27.12 million won, which is 70.2 percent of their claimed legal extra pay for January 2012 to May 2014, plus delay charges.With the court
Kumho Tire’s all-season tire for the European market, “SOLUS 4S HA32+,” has received excellent evaluations in the 2022 tire test conducted by Auto Bild, Europe’s most prestigious automobile magazine.Auto Bild recently conducted a braking force test on 35 products for all seasons of major brands sold
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. 3Q22 earnings miss market consensus— 3Q22 OP came in at KRW230.5bn (-35% QoQ, -63% YoY), missing the market consensus (KRW293.8bn) by 22%. We attribute the shortfall to across-the-board declines in sales excl. tir
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. Initiate coverage with HOLD and TP of KRW141,000 We initiate coverage of Kumho Petrochemical with a HOLD rating and target price of KRW141,000 (3.3% upside). We have used the P/B-ROE model in deriving TPs for Kore
The financial authorities are failing to sell MG Non-Life Insurance and KDB Life Insurance.The Korea Deposit Insurance Corp. is planning to choose a company to be in charge of selling MG Non-Life Insurance after Oct. 21 and then announce the bid within this year.MG Non-Life Insurance has been under
A high-ranking official of the U.S. state of Georgia visited Korea to discuss moving up the construction schedule for Hyundai Motor Group’s electric vehicle plant. If the plant starts operation earlier, Hyundai Motor Group will be able to receive tax benefits from the U.S. government earlier.Pat Wil
Kumho Tire has been chosen as a winner in the design concept category of Red Dot Design Award 2022 for its Airborne Tire.Korean developers of urban air mobility (UAM) plan to release UAM vehicles in 2025 and launch official UAM services in 2030. They are developing a 100 percent electric urban verti
South Korean petrochemical companies’ business conditions are deteriorating with raw material and product prices going up and down, respectively.Lotte Chemical recorded an operating loss of 21.4 billion won in the second quarter of this year whereas its operating profit was 594 billion won in the se
South Korean tire manufacturers are going through a hard time as raw material prices and shipping costs are soaring and automakers are reducing their production due to the ongoing automotive chip shortage.As for the shipping cost, the Shanghai Containerized Freight Index has quadrupled since the end
Petrochemical companies’ business conditions are deteriorating as the war in Ukraine is leading to continuously high oil prices, which mean an increase in their cost burden and a decline in demand for their products.At present, stock analysts are estimating LG Chem’s Q2 operating profit at 872.9 bil
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. 1Q22 earnings beat market consensus — Kumho Petrochemical reported 1Q22 revenue of KRW2.2tn (+18.6% YoY, +1.2% QoQ) and OP of KRW449.1bn (-26.7% YoY, +8.1% QoQ), which beat the market consensus of KRW408.2bn (Ap
Kumho Tire is supplying original equipment (OE) tires for the Kia EV6, an electric vehicle (EV) that is well received in North America and Europe. This resonance noise-reducing tire is rising into prominence in the global EV tire market.Kumho Tire started developing tires for EVs early. In April 201
South Korean chemical companies’ business performances are likely to deteriorate this year due to the war in Ukraine.According to FnGuide, Lotte Chemical’s operating profit for the first quarter of this year is estimated at 116.3 billion won, down 81 percent from a year ago. In addition, LG Chem’s i