Hyosung Covers Exterior of AI Speakers Worldwide
Hyosung Group Aims for a Rebound in Q3
Spandex Sales for Masks
Covering AI Speaker Surfaces
Increased Demand for Polyester Fabrics
[Asia Economy Reporter Park Soyeon] Despite the COVID-19 pandemic, major affiliates of the Hyosung Group have announced a rebound in their third-quarter performance this year. In particular, Hyosung TNC, which recorded a large-scale loss in the second quarter, is aiming for a 'V-shaped recovery' in the second half. This is thanks to the explosive increase in demand for spandex used in masks and polyester fabrics covering the surfaces of artificial intelligence (AI) speakers due to COVID-19.
According to FnGuide on the 13th, the consensus operating profit (average estimate by securities firms) for the third quarter of major affiliates such as Hyosung Chemical, Hyosung Advanced Materials, Hyosung TNC, and Hyosung Heavy Industries was estimated at a total of 118.1 billion KRW. The operating profits by affiliate were expected to be 42.3 billion KRW for Hyosung TNC, 33.0 billion KRW for Hyosung Heavy Industries, 31.2 billion KRW for Hyosung Chemical, and 11.6 billion KRW for Hyosung Advanced Materials. This contrasts with the combined operating profit of 9.8 billion KRW for the four affiliates in the second quarter. At that time, Hyosung TNC and Hyosung Advanced Materials recorded operating losses of 42.8 billion KRW and 8.0 billion KRW respectively, while Hyosung Chemical posted 3.6 billion KRW in profit and Hyosung Heavy Industries recorded 57.0 billion KRW in operating profit.
The affiliate leading the third-quarter rebound is Hyosung TNC, the global No.1 in spandex. During the COVID-19 spread phase, sales of spandex for masks greatly expanded, and structural demand growth has been achieved due to increased blending ratios and the spread of athleisure trends.
It is also a positive factor that the company is expanding supply of AI speaker materials to global IT companies. The trend is shifting from plastic or metal materials to polyester fabrics for AI speaker surfaces, and demand for AI speakers has increased as indoor living has increased due to COVID-19. As preferences for fabric materials with diverse colors and pleasant textures have strengthened from interior and emotional perspectives, sales volume has surged. Hyosung TNC provides polyester yarn woven into fabric and completed with dyeing, and has succeeded in securing various domestic and international supply channels.
Meanwhile, Hyosung Advanced Materials improved its performance due to recovery in demand from front industries such as automobiles, and Hyosung Chemical achieved performance improvement by expanding supply of construction polypropylene (PP) pipes in China.
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A Hyosung Group official said, "Although we experienced a crisis due to COVID-19 in the second quarter this year, we took it as an opportunity to improve our business structure and will actively strive to pioneer new markets such as eco-friendly fibers."
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