[Featured Stock] Hyosung Advanced Materials, Operating Profit Expected to Improve Next Year... Up 4%

[Asia Economy Reporter Minji Lee] As Hyosung Advanced Materials is expected to continue its performance improvement trend next year, its stock is showing a strong rise of over 4%.

At 9:30 a.m. on the 7th, Hyosung Advanced Materials was trading at 692,000 KRW, up 3.9% from the previous trading day. The stock even surged to 700,000 KRW in early trading.

It is analyzed that the favorable exchange rate and the tight supply of tire cords positively influenced the stock price, with expectations of solid performance next year as well. Dongwook Lee, a researcher at Kiwoom Securities, said, “With limited effective supply increase of polyester (PET) tire cords, which are the main products for industrial materials, and rising demand for original equipment (OE) tires, the supply-demand tightness for PET tire cords is expected to continue next year.”

He also added that a reevaluation of the carbon fiber business is necessary. Researcher Dongwook Lee stated, “There is a need to reflect the value of the carbon fiber business more aggressively. Despite the high market growth rate, the company’s annual carbon fiber production capacity is 4,000 tons, resulting in sales of only about 60 to 70 billion KRW. However, with additional expansions, sales are expected to increase to 123.9 billion KRW and 153.4 billion KRW in next year and the year after, respectively.”