[Hot Stock] Hyosung Heavy Industries Surges Over 16% on Earnings and Order Surprises

by Lee Seungjin

Published 28 Jul.2025 09:27(KST)

On July 28, Hyosung Heavy Industries saw a sharp surge in its stock price during early trading. This rise came as securities firms simultaneously raised their target prices after the company reported an earnings surprise for the second quarter.

As of 9:23 a.m. on the same day, Hyosung Heavy Industries was trading at 1,312,000 won, up 187,000 won (16.62%) from the previous trading day.

On July 25, Hyosung Heavy Industries announced that its operating profit reached 164.3 billion won, a 162.2% increase compared to the same period last year. Revenue was 1.5253 trillion won, up 27.8% year-on-year. Net profit for the period surged 209.7% to 87.3 billion won.

In the second quarter, the amount of heavy industry orders increased by 46% year-on-year to 2.2 trillion won, and the order backlog reached a record high of 10.72 trillion won, up 63%.

As a result, securities firms simultaneously raised their target prices for Hyosung Heavy Industries. LS Securities raised its target price to 1.55 million won, while Daishin Securities set its target price at 1.5 million won. Shinhan Investment & Securities raised its previously suggested target price of 620,000 won from February by 113%, now setting it at 1.32 million won.

Sung Jonghwa, a researcher at LS Securities, explained, "This year's order guidance was raised significantly, considering the strong performance in both the first and second quarters. However, even this guidance is conservative compared to the actual results, so the company is likely to exceed its guidance. In terms of operating results, considering the robust performance in the first and second quarters, the company is expected to outperform even when factoring in the impact of tariffs."

Heo Minho, a researcher at Daishin Securities, stated, "The company's competitiveness in the high-growth North American power equipment market has been reaffirmed. The company plans to invest 60 billion won to expand its domestic plant with facilities dedicated to exporting gas-insulated switchgear (GIS). The scheduled completion date is September next year, and the expected increase in revenue is approximately 340 billion won."