[Special Stock] Hyosung Advanced Materials Hits New Low Again... Down 30% Since Spin-Off

Stock Prices Lower Than 'Black Monday'
Global Tire Cord Demand Weakens
Affiliate Separation Also Seems to Have Acted as a Negative Factor

Hyosung Advanced Materials' stock price continues its relentless plunge. It has dropped 30% in about two months since the spin-off.

As of 9:26 AM on the 9th, Hyosung Advanced Materials is trading at 256,000 KRW, down 3.58% (9,500 KRW) from the previous trading day. This price is below the 52-week low of 264,000 KRW recorded during the 'Black Monday' in August. After that decline, Hyosung Advanced Materials rebounded to around 300,000 KRW but then broke the previous low again, reigniting the new low rally.

Hyosung Advanced Materials is one of the affiliates of HS Hyosung, which was established as a holding company through a spin-off by Cho Hyun-sang, the third son of the Hyosung family and Vice Chairman of HS Hyosung. The company also changed its name to HS Hyosung Advanced Materials. It is a core affiliate of HS Hyosung. It holds the world's number one market share in tire reinforcement materials such as PET tire cords. Last year's sales amounted to 3.2023 trillion KRW.

However, the dominant view is that Hyosung Advanced Materials' medium- to long-term growth potential has weakened. This is due to a slowdown in demand for tire cords caused by inflation and other factors. Last year's operating profit decreased by about 50% compared to the previous year. Additionally, since the proportion of internal transactions within the Hyosung Group was high, there are ongoing concerns that the separation of affiliates could negatively impact performance. Reflecting these concerns, Hyosung Advanced Materials' stock price has fallen about 30% from 368,000 KRW in July, when the spin-off took place.