[Click eStock] "Hyosung Advanced Materials, Expected Differentiated Stock Performance Compared to Competitors"

Shinhan Investment Corp. on the 18th forecasted that Hyosung Advanced Materials is likely to show differentiated performance and stock price trends compared to its competitors. The investment opinion 'Buy' and the target price of 520,000 KRW were maintained.

Lee Jin-myung, a researcher at Shinhan Investment Corp., explained that positive signals have been detected in both the tire reinforcement materials and carbon fiber sectors. He stated, "After six consecutive quarters of decline, tire cord export prices have turned upward. The price in the second quarter rose 3% compared to the previous quarter, and the price this month increased 10% compared to the beginning of the year. Additionally, global replacement tire demand increased in April, sustaining the recovery." He added, "In carbon fiber, as the price decline trend stabilizes and demand from downstream sectors recovers, gradual profitability improvement is expected. There is potential for a performance rebound in the second half of the year through the expansion of high value-added products."

He further noted, "In tire reinforcement materials, sales volume increase and price rises due to demand recovery in downstream sectors will highlight the global No.1 competitiveness in this improving market environment. Also, in carbon fiber, with competitors’ capacity expansions and the stabilization of price declines in China, demand recovery and the effects of capacity expansion are expected to strengthen in the second half, warranting attention to the possibility of profitability recovery."