[EQUITIES] Korean Air to post record-high Q3 operating profit: analyst

[THE INVESTOR] Korean Air will post record high earnings and the uncertainty on additional funding for Hanjin Shipping will be resolved, according to Mirae Asset Daewoo Securities on Oct. 11.

The securities firm maintained a “buy” recommendation and the target price of 38,000 won (US$34.25).

South Korea’s largest full service carrier will post 441.6 billion won operating profit in the third quarter, a 30.1 percent hike from the same period last year, and 3.13 trillion won revenue, up 5.3 percent on-year, the best figures in the company’s history, said Ryu Je-hyeon, an analyst at Miare Asset Daewoo. 

Its revenue continues to increase and both low exchange rate and low oil prices will further boost the performance, he added.

Korean Air will suffer 400 billion won loss related to Hanjin Shipping, the analyst forecast, but 315.4 billion won foreign currency translation gain will considerably offset the loss and further assistance seems unlikely, he noted.

By Hwang You-mee (glamazon@heraldcorp.com)