[Asia Economy Reporter Park Jihwan] IBK Investment & Securities on the 28th forecasted that Hyosung Heavy Industries’s performance next year will increase by more than 7% due to the resumption of orders after the COVID-19 pandemic and the prior reflection of one-time restructuring costs.
Lee Sanghyun, a researcher at IBK Investment & Securities, stated, "Hyosung Heavy Industries is expected to maintain profitability-focused management next year, avoiding low-price orders as it did this year," adding, "The scale is expected to rise by 7.0% compared to this year, reaching 3.2 trillion KRW."
In the heavy industry sector, the resumption of orders delayed by COVID-19 and the improvement of the profit structure due to the introduction of the electricity price linkage system by KEPCO are expected to lead to improved orders for aging facilities. The construction sector is anticipated to benefit from expectations of a recovery in the construction market driven by supply policy optimism.
Researcher Lee Sanghyun said, "Since one-time factors such as restructuring costs were significant in the first quarter of this year, a normalization of profitability is expected next year," and added, "Benefits are expected from the promotion of high-profit data center new businesses and the potential increase in medium- to long-term wind power equipment deliveries due to domestic renewable energy expansion policies." He also analyzed that the burden from U.S. anti-dumping tariffs could be reduced through local production, enabling profit improvement.
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