[Click eStock] "Hyosung Heavy Industries, Q2 Earnings Improvement Expected... Target Price Up 59%"

[Asia Economy Reporter Park Jihwan] IBK Investment & Securities forecasted on the 24th that although Hyosung Heavy Industries' heavy industry division experienced a downturn in the first quarter due to one-time factors such as US anti-dumping duties (KRW 33.2 billion) and voluntary retirement compensation (KRW 23.4 billion), performance improvement is expected from the second quarter onward. Accordingly, the investment opinion was upgraded to 'Buy' and the target stock price was raised by 59.1% from KRW 22,000 to KRW 35,000.

Researcher Lee Sanghyun of IBK Investment & Securities explained, "Profitability improvement and restructuring effects are expected due to the recovery of orders mainly in KEPCO and new power business product lines (special transformers, ESS, STACOM)," adding, "The construction division continues to maintain stable performance through new orders exceeding KRW 1 trillion annually and an order backlog exceeding KRW 3 trillion." He also evaluated that solid profitability is expected to be maintained through excellent orders, remodeling, diversification of overseas projects, and risk management.

Researcher Lee Sanghyun stated, "Based on the know-how accumulated from building CNG and LNG gas stations, Hyosung Heavy Industries is the only domestic total solution company for hydrogen charging stations with engineering capabilities for the entire charging system," adding, "As of the end of February this year, it has secured 22 out of 80 cumulative domestic hydrogen charging station orders, recording a supply share of 27.5%, ranking first." According to the hydrogen economy roadmap, the targets are 310 stations cumulatively by 2022, 660 by 2030, and 1,200 by 2040, which is also viewed positively.

Researcher Lee said, "Recently, Hyosung and Linde jointly decided to invest KRW 300 billion by 2022 to build a liquefied hydrogen plant with an annual capacity of 13,000 tons," emphasizing, "Hyosung Heavy Industries is expected to contribute to building the value chain from hydrogen production, distribution, to charging stations."

This content was produced with the assistance of AI translation services.