On the 19th, Kumho Tire's stock price is weak in the early trading. This is interpreted as the impact of a large fire at the Gwangju factory over the past weekend, raising concerns about production disruptions.
As of 9:20 a.m. on this day, Kumho Tire is trading at 4,465 won, down 345 won (7.17%) from the previous trading day.
On the 17th, a large fire occurred at Kumho Tire's Gwangju factory, incinerating more than 50% of the factory's area. Therefore, long-term production disruption seems inevitable.
Kim Chang-ho, a researcher at Korea Investment & Securities, said, "The production capacity of the Gwangju factory is 16 million units, accounting for 60% of the domestic factory's production capacity," and noted, "The business plan for this year anticipated a production volume of 12 million units, but if resumption of operations within the year is difficult, a sales disruption of about 7 million units is expected." Korea Investment & Securities has downgraded Kumho Tire's target stock price from 7,000 won to 6,500 won on this day.
In contrast, NEXEN TIRE and Hankook Tire & Technology are strong due to expectations of a spillover benefit. At the same time, NEXEN TIRE and Hankook Tire & Technology are trading at 6,050 won and 41,300 won, up 190 won (3.24%) and 1,150 won (2.86%), respectively.