With Workout Nearly Done, Analysts Sees Bright Kumho Future - Tire Review Magazine

With Workout Nearly Done, Analysts Sees Bright Kumho Future

Korea Investment & Securities anticipates that a continually improving financial position at Kumho Tire Co. makes the company good value for investors.

In comments published by English-language Korean publication IT Times, analyst Kim Jin-woo said the tiremaker’s debt burden is falling rapidly, and he opines that this financial turnaround isn’t yet reflected in the current Kumho Tire share price. Kumho, thus, has been given a “buy” recommendation by Korea Investment & Securities and the target share price has been set at KRW 16,000.

“With the redemption of the bonds with stock purchase warrants and convertible bond conversion, its consolidated debt ratio is expected to decline to 288% this year from 76% in 2011,” said Kim. “During the same period, the interest coverage ratio will rise to three times from one time.”

Kim added that growing domestic marketshare and capacity utilization will further boost Kumho’s financial position. He estimated that net profit will increase 123%, and expressed optimism about the company’s ability to graduate from its debt workout program in 2014. It entered debt restructuring along with Kumho Industrial at the end of 2009. (Tyres & Accessories)

You May Also Like

Nexen Tire America details its 2024 U.S. motorsports program

Nexen Tire Motorsports drivers competed at the “Streets of Long Beach” Pro Championship event using the company’s N’Fera Sport R tire.


Nexen Tire America is kicking off its 2024 U.S. motorsports program. In addition to partnering with two of last year’s Nexen Tire Motorsports drivers in Formula Drift – Federico Sceriffo and Trent Beechum – Nexen Tire said it has also added a third driver to its roster, Mike Power.

Chapel Hill Tire opens 12th location in Durham, NC

Chapel Hill Tire said the new Durham location will offer everything from routine maintenance to complex repairs.

Hankook acquires additional stake in thermal management systems company, Hanon Systems

Hankook & Company Group said it will hold a 50.53% stake in Hanon Systems and take management rights as the largest shareholder.

Handshake agreement
PRT launches 59 new complete strut assemblies

Extending PRT’s product portfolio in North America, the new release represents nearly 12M vehicles in new coverage.

Tire Discounters partners with the Atlanta Braves for home run promotion

For every home run hit by the Braves this year in a game, Tire Discounters will give fans discounts on Goodyear/Cooper tires.

Other Posts

Michelin sponsors WWII vets’ return to Normandy for D-Day 80th anniversary

WWII vets will participate in several parades, ceremonies and celebrations during their 10-day tour of the Normandy region.

McCarthy Tire Service partners with Truckers Against Trafficking

McCarthy Tire Service has launched a company policy aimed at identifying and reporting potential human trafficking situations.

TIA’s EV Advisory Council tours Midtronics HQ

The agenda included a council meeting, a facility tour and a demonstration led by the Midtronics EV platform team.