[Click eStock] "Hyosung Heavy Industries to Continue Benefiting from Global Power Grid Strengthening This Year"

On the 8th, IBK Investment & Securities forecasted that Hyosung Heavy Industries will continue to benefit from the strengthening of the global power grid this year. They maintained a 'Buy' investment rating and a target price of 580,000 KRW.

IBK Investment & Securities estimated that Hyosung Heavy Industries' consolidated sales for the fourth quarter of last year increased by 14.4% year-on-year to 1.4786 trillion KRW, and operating profit rose by 93.4% to 122.7 billion KRW. Both sales and operating profit exceeded market expectations of 1.4496 trillion KRW and 118.9 billion KRW, respectively.

Researcher Kim Taehyun of IBK Investment & Securities stated, "The supply of ultra-high voltage transformers continues to struggle to meet demand, resulting in lead times recently extending by more than two years. The continued increase in domestic ultra-high voltage transformer export value in the fourth quarter of last year, according to customs data, is also positive." He added, "Once the expansion of the Changwon plant is completed within the first half of this year, domestic ultra-high voltage transformer production is expected to increase by 10%, expanding annual sales to approximately 800 billion KRW."

Researcher Kim also noted, "With construction-related losses fully reflected in the fourth-quarter results, the risks in the construction sector appear to have been resolved for now." He added, "This year, sales and operating profit growth are expected to continue, driven by overseas performance growth due to the strengthening of the global power grid."

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