Hankook Tire
Thesis
Hankook Tire is expected to see a 9% increase in average selling price (ASP) across all regions, leading to gross profit margin expansions and significant bottom-line growth of 32% and 29% in 2012 and 2013, respectively. The intrinsic valuation suggests a price target of W71,000 per share, representing a 66% upside from the current price of W42,750.
Did it work?
While Hankook Tire's stock price has increased by 58.4%, it has not reached the projected price target of W71,000, which represents a 66% upside. Additionally, the expected gross profit margin expansions and bottom-line growth have not been confirmed with specific financial results provided for 2012 and 2013. Therefore, the thesis has partially played out but has not fully achieved its goals.
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