[Featured Stock] Hyosung Advanced Materials, Earnings Surprise Hits 52-Week High

[Asia Economy Reporter Lee Seon-ae] Hyosung Advanced Materials recorded a 52-week high amid earnings surprise expectations. This is interpreted as reflecting the forecast that the company's first-quarter performance this year will far exceed market expectations.

As of 10 a.m. on the 15th, Hyosung Advanced Materials is trading at 341,500 KRW, up 8.50% from the previous trading day. During the session, it rose to 343,000 KRW, a 52-week high.

On the same day, Kiwoom Securities maintained a buy rating on Hyosung Advanced Materials and raised the target price by about 9% to 468,000 KRW, considering the improvement in earnings.

Hyosung Advanced Materials' operating profit for the first quarter of this year is expected to reach 65.1 billion KRW, an increase of 128.5% compared to the same period last year, significantly surpassing the recently sharply raised market expectation of 46.3 billion KRW. This is due to anticipated improvements in the selling price and operating rate of the main business division, tire reinforcement materials, and the continued strong profitability of other segments such as aramid and carbon fiber, along with expected spread increases at the Vietnam spandex plant.

In the first half of this year, the mechanical completion of the aramid expansion facility will be achieved. The effect of the expansion (from 1,250 tons to 3,750 tons) is expected to be fully reflected starting in July. Although the production capacity is 3,750 tons, actual production volume may further improve through process enhancements. Aramid is used to reinforce stiffness by mixing with nylon in the cap ply part of tires for electric vehicles. Researcher Lee Dong-wook of Kiwoom Securities stated, "With the increase in demand for 5G optical cables and the expansion of the electric vehicle market, the company's aramid expansion will be immediately absorbed, positively impacting the company's performance in the second half of the year."

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