On the 24th, Han Young-soo, an analyst at SamsungSecurities, stated, “The main reason the reported second-quarter operating profit exceeded market expectations by 69% was the inclusion of an $81 million tariff refund,” adding, “We estimate that second-quarter earnings, excluding all of the aforementioned factors, were in line with market expectations.”
SamsungSecurities assessed that signs of a business recovery at Doosan Bobcat continued this quarter. It analyzed that retail sales—which reflect actual product demand—improved, and the effect of price increases persisted; as a result, North American sales grew year-over-year and quarter-over-quarter despite a slowdown in unit sales due to internal system checks.
The firm also projected that the effects of the additional price hikes implemented last quarter would continue into the second half of the year. It noted that dealer inventories had fallen to approximately three months’ worth, citing this as a factor that could boost dealers’ demand to build inventory and amplify the impact of price increases in the future.
One analyst explained, “The fact that the effects of price increases are continuing is also evidence of a recovery in the industry,” adding, “The decline in dealer inventory to the three-month level is also positive.”
SamsungSecurities revised its profit estimates upward to reflect the stronger-than-expected impact of price hikes and tariff refunds. Accordingly, it raised its target price to 98,000 won, a 6.5% increase from the previous level.
One analyst noted, “While the valuations of overseas construction equipment companies remain at very solid levels based on expectations of an industry recovery, Doosan Bobcat is trading at a significant discount compared to them,” adding, “Considering the potential for recovery in its core North American compact equipment market and its competitiveness in that market, we believe the current discount will gradually narrow.”
