[Click e-Stock] "Hyosung Advanced Materials to See Full-Fledged Improvement in Carbon Fiber Profitability... Target Price Up 16.7%"

On February 2, NH Investment & Securities raised its target price for Hyosung Advanced Materials from 240,000 won to 280,000 won, an increase of 16.7%, while maintaining its "Buy" investment rating.

Younggwang Choi, an analyst at NH Investment & Securities, stated in a report, "We expect the improvement in carbon fiber profitability to be fully realized in 2027. To reflect this, we have changed the EBITDA used for our target price calculation from the previous 2026 estimate to the average estimate for 2026 and 2027."

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Hyosung Advanced Materials posted an operating profit of 30.3 billion won in the fourth quarter of last year, up 56.7% from the previous quarter, in line with securities firms' forecasts.

Choi pointed out that while the strong profitability of tire cords continues, the profitability of carbon fiber is expected to show a significant improvement starting in the third quarter of 2026, based on the expansion in Vietnam. He explained, "Hyosung Advanced Materials will begin operating a new 5,000-ton carbon fiber facility in Vietnam in the third quarter of this year, and an additional 2,500 tons in the first quarter of next year. As the proportion of low-priced sales to China declines and the operating rate of the highly competitive Vietnamese facility increases, the carbon fiber deficit is expected to narrow significantly."

Accordingly, with the disposal of excess carbon fiber inventory completed in the second half of last year, the impact of impairment losses and inventory valuation losses is expected to disappear this year. Choi also predicted that, even before the new Vietnamese facility comes online, carbon fiber profits in the first half of this year will improve by about 26 billion won compared to the previous half.

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