[Click eStock] Hyosung TNC, Target Price '800,000 Won'

On the 29th, a dealer is closely watching the monitor in the Hana Bank dealing room in Euljiro, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Hwang Junho] Hana Financial Investment raised the target price of Hyosung TNC by 77% from the previous level to 800,000 KRW on the 1st. They also maintained a buy rating.

Hana Financial Investment expects a structural profit level-up due to the normalization of profits from the newly established factories in Quzhou, China, and India by Hyosung TNC. They also forecast the creation of new demand in athleisure and hygiene products despite COVID-19. The raw material butanediol (BDO) is expected to stabilize downward, which is anticipated to have a cost reduction effect. Furthermore, the recent stock price of Hyosung TNC reflects the level of strong earnings, but since a value reassessment fitting its global No.1 status has not yet occurred, the target price was revised upward.

Hyosung TNC's operating profit in the fourth quarter of last year was 130.1 billion KRW, a 97% improvement compared to the previous year. This far exceeded market expectations. The spandex operating profit reached a record high of 124.8 billion KRW. The operating profit for the first quarter of this year is also expected to improve by 27% year-on-year to 165.6 billion KRW.

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