- We expect 2Q20 operating profit to turn to a loss of KRW3.6bn (turn to loss YoY, -0.9% operating margin), far below the consensus estimate.
- Plummeting domestic utilizations caused by weak US-bound exports coupled with mounting fixed-cost burdens caused by the lockdown in Europe have been the major reasons.
- We cut our target price by 12% to KRW5,300 and maintain Marketperform on the company.
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