Hyosung Heavy Industries' stock price showed a significant upward trend. This is interpreted as being driven by the emerging possibility of splitting the construction and power equipment businesses, along with the highlighted competitiveness of the power equipment sector.
As of 3:10 PM on the 17th, Hyosung Heavy Industries' stock was trading at 375,000 KRW, up 19.24% from the previous day's closing price. The stock price surpassed 400,000 KRW during the morning session, then declined to around 320,000 KRW, before rebounding and maintaining an upward trend throughout the afternoon.
The stock price reacted to news that Hyosung Heavy Industries is pushing for a separation between its heavy industries division, which focuses on power equipment, and its construction division. Given the recent sharp rise in stock prices of companies related to power equipment and cables, it is expected that if the business division split occurs, the corporate value of the power sector will be properly reflected.
On the same day, a media outlet reported, citing sources from the investment banking (IB) industry, that Hyosung Heavy Industries is contacting several major securities firms to select an underwriter for the business division split. In response, Hyosung Heavy Industries clarified, "The report is 'groundless' and we have never considered the split."
Expectations for the power equipment business, including ultra-high voltage transformers, are also contributing to the rising stock price. With the recent AI boom, large-scale computing and data centers are expected to require massive amounts of power, significantly increasing the corporate value of companies related to power equipment and cables.
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