[Click eStock] "Hyosung, Record Quarterly Earnings Expected... Target Price Up 15%"

[Asia Economy Reporter Ji-hwan Park] Daishin Securities on the 12th forecasted record-breaking quarterly earnings for Hyosung, upgrading its investment rating to 'Buy' and raising the target price by 15.4% to 150,000 KRW.

Ji-hwan Yang, a researcher at Daishin Securities, stated, " The target price increase reflects the rise in the equity value of affiliates and the operating value increase due to earnings surprises," adding, "With improved performance from affiliates, the market capitalization of Hyosung's listed affiliates exceeds 8 trillion KRW, and the equity value held by Hyosung surpasses 1.8 trillion KRW."

Hyosung's second-quarter earnings this year are expected to significantly exceed previous estimates and market expectations, delivering a surprise performance. Researcher Yang said, "Operating profit for the second quarter is expected to surpass market expectations by about 70%," and "Hyosung's second-quarter sales are projected at 793.1 billion KRW, up 20.2% year-on-year, with operating profit increasing by 896.7% to 174.9 billion KRW."

Following the first quarter, the sharp increase in equity-method income from subsidiaries in the second quarter is expected to have absolutely contributed to the performance improvement of Hyosung TNC and Hyosung Advanced Materials.

Hyosung Chemical and Hyosung Heavy Industries are also expected to contribute to the surprise earnings improvement. Researcher Yang noted, "Hyosung TNS's sales of products to Russian banks (Sber, VTB, Home Credit Bank) are expected to be deferred to the third quarter, so third-quarter earnings are anticipated to increase significantly."

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