Hankook Tire & Technology (161390.KS): Above consensus 2Q OP, driven by raw material input cost

研报英文原文证据摘录

Action |

11 Aug 2026 08:51:18 ET │ 13 pages

Hankook Tire & Technology

(161390.KS)

Above consensus 2Q OP, driven by raw material input cost

CITI'S TAKE

Hankook Tire & Technology (Hankook) recorded above consensus OP in 2Q,

driven by tailwinds from volume / pricing / currency / raw material input

cost. After raising FY27-28 NP estimates by 6-9%, we raise our 12-m TP to

W79,000.

Above consensus OP in 2Q — Hankook reported W5.7tr revenue (+6% y/y) and

W559bn OP (+58% y/y) in 2Q26, OP coming in at 6% above consensus. Given below

consensus OP from Hanon System biz (see note), above consensus OP was entirely

driven by tire biz. Tire biz enjoyed 8% revenue tailwind from forex, 2% revenue

tailwind from tire weight & 2% revenue tailwind from ASP/mix, along with lower raw

material input cost. Accordingly, tire biz OPM recorded 17.2% (or 3.4%p OPM

expansion on y/y basis & 0.2%p OPM expansion on q/q basis). That said, NP came

in at 16% below consensus, mainly due to forex-related loss.

Likely cost headwind in 2H — Key raw material prices saw notable uptrend in 2Q26

with natural rubber price up 14% QoQ, synthetic rubber price up 36% QoQ and

carbon black price up 26% QoQ. Given around 3 months of time lag between raw

material spot price vs. raw material input cost at Hankook Tire, we expect

sequentially higher raw material input cost burden in 3Q. Moreover, freight rate also

increased by double-digit in 2H26 (vs. 1H26) for Hankook. All in all, we forecast tire

biz OPM to decline from 17% in 1H26 to 14% in 2H26 (albeit some buffer from

scheduled price hikes by Hankook Tire).

n

Buy

Price (11 Aug 26 15:45)

W65,500

Target price

W79,000↑

from W72,000

Expected share price return

20.6%

Expected dividend yield

3.9%

Expected total return

24.5%

Market Cap

W8,113,817M

US$5,723M

Price Performance

(RIC: 161390.KS, BB: 161390 KS)

Raising TP — While we lower FY26 NP estimate by 2% (reflecting more conservative

non-operating item assumptions, including forex-related non-op items), we raise

FY27-28 NP estimates by 6-9% (reflecting higher tire biz OPM assumptions being

partially offset by lower Hanon System revenue assumptions). We raise our 12-m TP

…