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P Pitch Archive Stock pitches across investing competitions
← Winter 2012

Hankook Tire

KRW pitch long

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?

partial confidence: medium

The long direction proved correct, with Hankook Tire returning +55.3% since the pitch. However, the thesis targeted a 66% upside to W71,000 based on expected 2012-2013 earnings growth of 32% and 29% — a horizon that has long since passed (177 months elapsed). The fact that the cumulative return over nearly 15 years still falls short of the target that was expected within roughly 1-2 years (only ~3% annualized) indicates the thesis's specific margin-expansion and earnings-growth dynamics did not fully materialize as forecast, even though the stock ultimately appreciated.