[Featured Stock] Hyosung Advanced Expected to Apply Carbon Fiber to Hyundai Nexo... Undervalued Compared to Hydrogen Stocks

[Asia Economy Reporter Hyungsoo Park] Hyosung Advanced Materials is showing strong performance. The outlook for expanded sales of parts related to hydrogen and electric vehicles appears to have influenced the stock price.

At 9:44 AM on the 1st, Hyosung Advanced Materials was trading at 262,500 KRW, up 16.11% from the previous trading day.

EBest Investment & Securities forecasted that carbon fiber will be applied to most product groups in the hydrogen economy. The target price was raised by 51.8% from 247,000 KRW to 375,000 KRW. The investment opinion was maintained as 'Buy.'

Researcher Anna Lee of EBest Securities stated, "We expect the growth driver, carbon fiber, to be applied to Hyundai Motor's Nexo in the second half of this year," adding, "Since it will be applied to most product groups in the hydrogen economy, expansion potential is also expected."

She continued, "We also expect aramid to expand in scale and increase profits," explaining, "Aramid is used mixed with NY in not only 5th generation mobile communication (5G) optical cables but also in the tire cap ply section for electric vehicles to reinforce rigidity."

She said, "It can be confirmed that despite producing core materials for the hydrogen economy, it is significantly undervalued compared to other related stocks."

Researcher Dongwook Lee of Kiwoom Securities also analyzed, "Carbon fiber is expected to be applied not only to hydrogen vehicles but also to tube trailers," adding, "Tube trailers are 'Type 1,' mainly steel-based, so they are heavy and can transport only a small amount of hydrogen." He further added, "In Korea, development of 'Type 4' using carbon fiber is underway as a government policy task."