Report

Nexen Tire (002350.KS): Slow but steady

  • Amidst solid top-line growth, stabilizing rubber prices are helping to reduce raw material input prices
  • Company’s operating margin should continue to recover as a result.
  • Earnings will still move upwards on the back of volume growth in Korea (OE) and Europe.
Underlying
Nexen Tire Corp.

NEXEN TIRE CORPORATION is a Korea-based company mainly engaged in the production and sale of tires. Along with subsidiaries, the Company operates its business through two segments. Tire segment is engaged in the manufacturing and sale of tires including passenger car radial (PCR) tires, light truck radial (LTR) tires and sport utility vehicle (SUV) tires, as well as the provision of tire rental services. The Other segment involves in the transport and storage, mold, bread business. The Company distributes its products within the domestic market and to overseas markets, including China, America, Europe and Southeast Asia.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Myung Hoon Lee

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