[Click eStock] "Hyosung, Hydrogen Business Growth Becomes Visible... Stock Price Expected to Rise"

[Asia Economy Reporter Park Jihwan] Hi Investment & Securities forecasted on the 2nd that Hyosung's hydrogen business growth potential will become a momentum for stock price increase.

Lee Sangheon, a researcher at Hi Investment & Securities, stated, "Although the portfolio is centered on traditional base industries such as textiles, chemicals, and heavy industries, it will actively enter the eco-friendly energy market through hydrogen business in the future," adding, "The main subsidiaries, Hyosung Heavy Industries and Hyosung Advanced Materials, are expanding their portfolios through hydrogen businesses."

First, Hyosung Heavy Industries signed a joint venture (JV) investment agreement with Germany's Linde Group in December last year to promote the liquefied hydrogen business. The joint venture to be established consists of Hyosung Hydrogen as the liquefied hydrogen sales company and Linde Hydrogen as the production company. Linde Hydrogen plans to build a liquefied hydrogen plant on the Ulsan Yongyeon plant site by early 2023. Researcher Lee Sangheon explained, "The liquefied hydrogen produced here will be about 13,000 tons annually, enough to supply 100,000 hydrogen vehicles, making it the world's largest single facility."

The produced liquefied hydrogen is expected to be utilized in various mobility sectors such as vehicles, drones, ships, and forklifts. Above all, like liquefied natural gas (LNG), hydrogen must be distributed in a liquefied state to rapidly expand infrastructure. Hyosung Hydrogen plans to build hydrogen refueling infrastructure at over 120 locations nationwide in line with the completion of the liquefied hydrogen plant to ensure smooth supply of the produced products.

The researcher said, "The visibility of hydrogen business growth will act as a momentum for stock price increase," and added, "the current stock price is trading at a price-to-book ratio (PBR) of 0.7 times based on this year's expected performance." He further stated, "If the growth potential becomes visible through the expansion of the hydrogen business value chain, it will serve as a momentum for stock price increase."