[Click eStock] "Hyosung TNC's Q1 Operating Profit Expected to Increase by 96%"

On the 18th, IBK Investment & Securities predicted that Hyosung TNC's operating profit for the first quarter would increase to about twice that of the previous quarter. It is expected that the performance of all business sectors, including spandex and tire cords, will significantly exceed market expectations.

Lee Dong-wook, a researcher at IBK Investment & Securities, estimated Hyosung TNC's operating profit for the first quarter of this year at 56.8 billion KRW. This represents a 95.9% increase compared to the previous quarter. The operating profit of the core textile business is expected to increase by 52.3% to 44.6 billion KRW, while the operating profit of other sectors, including steel trading and tire cords, is expected to turn positive.

Lee analyzed, "Although spandex prices in China declined and supply volume decreased due to the Lunar New Year, the average supply price did not fall significantly due to expanded sales outside China." He added, "At the same time, raw material prices fell, leading to improved profitability." He also noted, "One-time costs related to a fire at some factories in China in the fourth quarter of last year likely were not reflected in the first quarter of this year."

He forecasted that the trend of performance improvement would continue into the second quarter. He said, "As spandex sales volume recovers after the Chinese Lunar New Year and competitors undergo restructuring, oversupply will ease." He also predicted, "With tire cords entering the peak season, the operating profit for the second quarter is expected to improve to 73.3 billion KRW, surpassing the first quarter."