[EQUITIES] KD Navien’s Q2 operating profit to rise 106%: IBK Securities

[THE INVESTOR] The second-quarter operating profit of Kyongdongd Navien, a Korean condense boiler maker, is likely to rise 106 percent, according to IBK Securities on July 15.

Revenue for this year is expected to rise 13.3 percent to 580 billion won (US$505.81 million), while operating profit stands at 50 billion won.

The company’s operating profit ratio was expected to rise more than 6 percentage points in the second quarter.

IBK said enhanced efficiency at the company’s plants will help bolster earnings.

Condense boilers account for about 53 percent of KD Navien’s business. Exports account for 46 percent of its sales. Among them, sales of water heaters in the US increased 28 percent in 2015 from a year earlier, with the amount reaching 230 billion won.

The US water heater market is currently estimated at an annual 10 million units, according to IBK.

By Kim Ji-hyun (jemmie@heraldcorp.com)