"HD Hyundai Heavy Industries Heads Toward 1 Million Won" Operating Profit Soars 109%; APR Posts Record Quarterly Sales on 251% Jump in U.S. Revenue [Stocktopia]

[The Financial News] Here is a roundup of major securities firm reports as of 10 a.m. on May 8.
HD Hyundai Heavy Industries delivered an earnings surprise in the first quarter, with operating profit beating the market consensus by 13.6%. As its strong cost structure and solid order intake were confirmed, the target price was sharply raised to 1.03 million won.
Kakao beat market expectations on first-quarter operating profit, but its target price was cut as valuations of global peers declined and the timing of monetization for its AI services remained uncertain. APR, a global beauty device company, reported record quarterly results as U.S. sales surged 251% from a year earlier, prompting an upward revision to earnings estimates.
◆HD Hyundai Heavy Industries (329180)― Samsung Securities Co., Ltd. / Analyst Han Young-soo
- Target price: 1.03 million won (raised from 890,000 won) | Previous close: 693,000 won
- Investment rating: Buy
Samsung Securities said HD Hyundai Heavy Industries posted an earnings surprise in the first quarter, with sales of 5.9163 trillion won and operating profit of 905.4 billion won, up 54.8% and 108.8% year on year, respectively. Operating profit beat the market consensus by 13.6%, leading the firm to sharply raise its target price from 890,000 won to 1.03 million won.
Analyst Han Young-soo said, "The first-quarter results proved the company's strong cost structure." He added that even without any special one-off gains, the company had already reflected a conservatively estimated bonus for this year in the first quarter. Taking into account a higher-than-expected level of currency hedging, he said the results were effectively close to an upside surprise.
He also noted that even though low-value-added mid-sized vessel sales were added through the merger with HD Hyundai Mipo, profitability in the merchant ship segment improved. Operating margins also improved in the offshore and engine divisions, which he said further demonstrated the company's strong cost structure.
◆Kakao Corp. (035720)― Hanwha Investment & Securities Co., Ltd. / Analyst Kim So-hye
- Target price: 70,000 won (lowered from 85,000 won) | Previous close: 45,250 won
- Investment rating: Buy
Hanwha Investment & Securities said Kakao Corp. recorded first-quarter sales of 1.94 trillion won and operating profit of 211.4 billion won, beating market consensus on operating profit. However, it lowered its target price from 85,000 won to 70,000 won, citing weaker valuations among global peers and a slight reduction in the target multiple for the Talk Biz segment.
The firm said mobility and Pay performed better than expected, while the exclusion of Kakao Games Corp. from consolidation improved subsidiary profitability. It added that the core business was also validated by a 16% increase in ad revenue within Talk Biz and 10% growth in display advertising.
Analyst Kim So-hye said, "Future share price movements will depend on the performance of the AI services being rolled out sequentially." She added, "It is difficult to expect immediate monetization, but user expansion and traffic growth still need to be confirmed."
◆APR (278470)― Kyobo Securities / Analyst Kwon Woo-jung
- Target price: 550,000 won (raised from 470,000 won) | Previous close: 401,500 won
- Investment rating: Not provided
Kyobo Securities said APR posted record quarterly results, with first-quarter sales of 593.4 billion won and operating profit of 152.3 billion won, up 123% and 179% from a year earlier, respectively. Based on the strong performance, it raised its operating profit estimates for this year and next year, and lifted its target price from 470,000 won to 550,000 won by applying a 35 times target price-to-earnings ratio to its next 12 months' earnings per share.
Even in the seasonally weak first quarter, U.S. sales jumped 251% year on year to 248.5 billion won. The firm said the results were supported by strong sales from Amazon Spring Sale and steady growth in regular sales.
In particular, with entry into 3,200 Walmart stores scheduled from June and additional Costco Wholesale Corporation placements nearing completion, analyst Kwon Woo-jung said the company is in a supply-shortage environment where global demand is growing faster than inventory. He said APR has solid growth momentum, with profitability improving through sales leverage and expansion into Western markets such as Europe.

sms@fnnews.com Sung Min-seo Reporter