[THE INVESTOR] South Korean conglomerate AK Holdings is expected to log strong earnings in the third quarter, thanks to healthy growth of its key subsidiaries, a local brokerage firm said Aug. 24.

On a consolidated basis, AK Holding’s revenue for July-September of this fiscal year is likely to stand at 708 billion won (US$630.6 million), and its operating profit at 65 billion won, according to analysts at Hyundai Securities. 

The Seoul-based holding company engaged in the management of its subsidiaries from petrochemicals and an air carrier to personal care products.

If AK Holdings’ third-quarter results match the estimates, it will mark the highest recorded revenues in the firm’s history.

“Subsidiaries of AK Holdings, including Jeju Air, Aekyung Industrial, Aekyung Petrochemical and AK Chemtech will continue to deliver improved earnings,” Hyundai Securities analyst Chun Yong-ki said.

He said the group’s department stores will also generate more sales than the same period last year, after it swung to profit in the second quarter, bolstered by e-commerce sales.

The brokerage upped AK Holdings’ price target to 110,000 won. The stock was traded at 62,000 won as of 10:20 a.m. on Aug. 24.

By Park Han-na (hnpark@heraldcorp.com)