[Click eStock] "Hyosung Heavy Industries, High-Margin Orders and New Business Expectations... Target Price Up"

On the 18th, IBK Investment & Securities raised the target price for Hyosung Heavy Industries from 180,000 KRW to 240,000 KRW.

Hyosung Heavy Industries is estimated to record sales of 997.5 billion KRW and an operating profit of 73 billion KRW in the third quarter. These figures represent increases of 27% and 30%, respectively, compared to the same period last year, aligning with market expectations. Although slightly lower than the previous quarter due to a decrease in operating days, high margins are expected to be maintained compared to the same period last year, as the heavy industry segment continues to recognize sales from high-margin orders.

As of the end of the first half of this year, the order backlog in the heavy industry segment stands at 3.5 trillion KRW, showing an upward trend compared to 3.3 trillion KRW at the end of last year. Power equipment accounts for 76% of total heavy industry orders, with 70% of this being overseas orders.

Regarding new business, trial production of liquefied hydrogen is expected at the Yongyeon plant by the end of this year, with full-scale production anticipated early next year. Hyosung Heavy Industries is promoting the annual production and distribution of 13,000 tons of liquefied hydrogen through a joint venture with Linde Group, known as the world's largest gas company.

Lee Sang-hyun, a researcher at IBK Investment & Securities, stated, "We expect continued performance growth due to increased demand for power equipment in the heavy industry segment, selective orders focused on high margins, and normalization of the U.S. production subsidiary."