Analysts Bullish on Hyundai Elevator Growth Prospects

A pair of analysts with Shinhan Investment Corp. said vertical-transportation equipment and service sales are projected to continue to grow for South Korea’s Hyundai Elevator, buoyed by additional apartments coming onto the domestic market and a new “smart” factory in Shanghai with 3.5 X the capacity of the previous facilities, Business Korea reports. Despite first quarter 2021 earnings estimates falling short of projections by approximately 14%, mainly due to a particularly strong first quarter 2020, the analysts recommend the purchase of Hyundai Elevator stock. For 1^st quarter 2021, the company posted operating profits of KRW24.9 billion (US$22 billion) on sales of KRW447.9 billion (US$397.3 billion), representing year-on-year increases of 9% and 9.6%, respectively. Presales of apartments are robust, they observed, and elevators, which are installed six-12 months prior to their completion, “are likely to benefit from the expanding presale volume.“