[Click e-Stock] "Hyosung Chemical, Continued Strong Performance + Increasing NFT Value... Target Price Up 9%"

[Asia Economy Reporter Ji-hwan Park] Kiwoom Securities maintained a 'Buy' rating on Hyosung Chemical on the 13th, stating that its operating profit this year is expected to surge by more than 40% compared to last year, continuing its strong performance streak. The target price was raised by 8.7% from the previous 460,000 KRW to 500,000 KRW. They also emphasized the need to reflect the increasing operating value of nitrogen trifluoride (NF3) alongside the improved earnings.

Dong-wook Lee, a researcher at Kiwoom Securities, said, "Hyosung Chemical's operating profit this year is expected to reach 257.5 billion KRW, an increase of more than 40% compared to last year," adding, "The effects of the expansion of the Vietnam PP and PDH plants will be fully reflected, and stabilization of major raw material prices such as LPG is anticipated." He also noted that TPA, NF3, and polyketone are expected to see performance improvements compared to last year due to expansion effects and improved supply-demand conditions.

With the full operation of US LPG export facilities and the easing of logistics disruptions, LPG exports to the US are expanding, leading to the expected stabilization of LPG prices, a key raw material. Additionally, the operation of the Vietnam PDH plant is expected to eliminate the company's external propylene purchases, which exceeded 200 billion KRW last year.

Researcher Lee stated, "The integration of Cavern and PDH has increased the operating rate of the expanded Vietnam PP plant, resulting in improved performance and economies of scale," and added, "With the improvement in the PET market and the expansion of PX supply, the TPA business division's deficit is expected to significantly decrease this year."

Furthermore, with the full operation of the Vietnam subsidiary, positive tax effects such as a 4-year corporate tax exemption, a 9-year 5% reduction, exemption from a 2% import tax on propane used in propylene production, and tariff benefits within the ASEAN region are expected to be fully reflected in this year's performance.

NF3's operating value after expansion completion is estimated to exceed 50% of the current market capitalization. The operating value of NF3 after expansion is estimated at around 600 billion KRW, surpassing 50% of the market capitalization. Researcher Lee said, "In early January this year, the domestic NF3 export price reached 30 USD per kg, approaching the 30 USD level for the first time since December 2018," adding, "This is due to increased demand for OLED displays and semiconductors, as well as growing demand for automotive electronic semiconductors."

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