[Click eStock] "Hyosung TNC Target Price 1 Million Won"

[Asia Economy Reporter Park So-yeon] Kiwoom Securities on the 17th set a target price of 1,000,000 KRW and a buy rating for Hyosung TNC. The closing price on the previous day was 549,000 KRW.

Operating profit for the fourth quarter of this year is expected to reach 403 billion KRW, a 209.8% increase compared to the same period last year, significantly exceeding market expectations.

Although there were some negative factors affecting profits and losses, such as capacity expansion by some competitors and the rise in prices of key raw materials like butanediol (BDO), an increase in spandex sales volume is anticipated due to the full-scale operation of the 15,000-ton capacity expansion in Turkey.

Despite the decline in the benchmark price of spandex in China, structural demand expansion such as an increase in spandex blending ratio and favorable exchange rate effects for export-oriented companies are also expected to support the performance.

Kiwoom Securities forecasted Hyosung TNC's annual operating profit for this year at 1.5 trillion KRW. ROE is expected to record 82.7%. Researcher Lee Dong-wook of Kiwoom Securities said, "Considering the current market capitalization of 2.4 trillion KRW, it is judged to be excessively undervalued."

Meanwhile, due to performance improvements this year and next year, the debt ratio, which approached 550% in 2018, is expected to sharply drop to 108.6% next year.

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