[Click eStock] "Hyosung TNC, 1Q Earnings Surprise"... Target Price 1,000,000 KRW

[Asia Economy Reporter Ji Yeon-jin] Kiwoom Securities announced on the 16th that it has raised its investment opinion to "Buy" and its target stock price to 1,000,000 KRW for Hyosung TNC, stating that the company's first-quarter earnings this year are expected to improve significantly beyond market expectations.

Hyosung TNC's operating profit for the first quarter of this year is expected to reach 225.7 billion KRW, a 187.5% increase compared to the same period last year, significantly surpassing the market forecast of 179.5 billion KRW. The performance of all business divisions is improving, and the first-quarter operating profit is about 85% of last year's full-year figure (266.6 billion KRW).

The textile division's operating profit is projected to increase by 211.7% year-on-year to 210.1 billion KRW. Lee Dong-wook, a researcher at Kiwoom Securities, stated, "Due to the input time lag effect, relatively lower raw material prices are applied, and the supply-demand tightness has caused a rapid improvement in the spread and margin of the main product, Spandex. The domestic and overseas Spandex plants continue to operate at 100% capacity, and differentiated nylon and polyester yarns, along with increased sales of eco-friendly products, are expected to improve performance."

The operating profit of the trade and other divisions is expected to increase by 40.5% year-on-year to 15.6 billion KRW.