[Click eStock] "Hyosung TNC, Target Price 420,000 Won... 14% Down"

On the 13th, NH Investment & Securities lowered the target price of Hyosung TNC by 14% from the previous level to 420,000 KRW, while maintaining a buy rating.

Choi Young-kwang, a researcher at NH Investment & Securities, stated, "We revised the valuation application period to 2025 and reflected the weakness in Spandex prices, lowering the 2025 operating profit forecast by 15%."

The weakness in Spandex prices is due to the decline in raw material (BDO) prices and the expansion of low-priced product supply from China. As of the 6th, the price of BDO per ton fell to $1,055, below the production cost ($1,200?$1,500). The Spandex price (25,300 yuan/t) dropped about 7% compared to the Q2 average. The inventory days of Chinese Spandex rose to 61 days. While major companies' inventory days remain around 30 days, small and medium-sized companies' inventory days increased significantly to 70?80 days. These smaller companies are expanding the supply of low-priced products to compensate for low product competitiveness and declining market share.

Researcher Choi said, "Although we are lowering earnings expectations, the direction of improvement remains valid," adding, "Investment attractiveness remains due to bottom-level industry indicators, positive forward-looking indicators, and valuation lows."