KOSPI Top Performer HD Hyundai Electric... Keyword: 'Dominating the US Market' [2024 Rising Stocks Review]

KOSDAQ No.1 is US Mask Pack Popularity 'Zenic'
Global Popularity and Earnings Growth Drive Stock Price Up↑

The stock with the highest increase in the KOSPI market this year (2024) was HD Hyundai Electric. This was thanks to the surge in power demand due to the expansion of AI data centers in the United States, which also strengthened the demand for transformers. In the KOSDAQ market, Jenik, which rode the K-beauty wave, recorded the highest rate of increase.

According to the Korea Exchange on the 31st, the stock with the highest return in the KOSPI market this year (January 2 to December 30, 2024) was HD Hyundai Electric, which rose 376.9%. In terms of market capitalization, it started at 2.8873 trillion KRW and ended the year at 13.77 trillion KRW.

HD Hyundai Electric is a company engaged in the manufacturing of power equipment such as power transformers and high-voltage circuit breakers. In 2022, it acquired HD Hyundai Plaspo, a strong small and medium enterprise in power conversion devices for renewable energy, targeting the power conversion market.

The reason for the stock price increase this year is analyzed as benefiting from the surge in transformer demand in the U.S. Recently, the expansion of renewable energy investment and AI data center construction in the U.S. has sharply increased power demand, solidifying transformer demand. It is estimated that about 60% of HD Hyundai Electric’s order backlog is from the North American region, and as of the third quarter of this year, the North American sales ratio is around 36%.

Researcher Han-gyeol Lee from Kiwoom Securities said, “Despite increased production by global transformer companies, the supply-demand imbalance in the North American market is unlikely to be resolved in the short term,” and added, “The expansion of sales share and profitability improvement in the North American market will drive HD Hyundai Electric’s earnings growth.”

The second highest rising stock in the KOSPI market was Samyang Foods, which rose 226.2% this year. Samyang Foods showed strength as its ‘Buldak Bokkeum Myun’ (Hot Chicken Flavor Ramen) gained popularity among the U.S. Gen Z generation through the ‘spicy challenge.’

Actual performance also surged. Samyang Foods’ expected annual sales and operating profit this year are 1.6771 trillion KRW and 337 billion KRW, respectively. Sales are expected to increase by 40% compared to the previous year, and operating profit is expected to more than double. Sales and operating profit are also expected to grow by about 15-25% next year.

Other stocks with high increases include SNT Energy (202%), expected to benefit from oil and natural gas development and production under U.S. President-elect Donald Trump; Doosan (175%), expected to benefit from businesses such as robotics, semiconductors, and nuclear power; and Gaon Cable (165%), expected to benefit from the U.S. power infrastructure market.

The top rising stock in the KOSDAQ market was Jenik, which hit big in the U.S. with its mask packs. Jenik showed a 525.3% increase this year. Jenik is the first company in Korea to develop water-soluble hydrogel mask packs. The stock price surged as Biodance, which ranked first in Amazon mask pack sales, is known as Jenik’s key client.

Researcher Eun-jung Park from Hana Securities said, “Jenik is developing new hydrogel mask pack products and conducting sample tests through cooperation with global clients, maintaining high utilization rates through customer base expansion and product diversification,” and forecasted, “In 2025, consolidated sales will reach 130 billion KRW and operating profit 33.3 billion KRW, recording increases of 154% and 429% respectively compared to the previous year.”

Silicon2, a U.S.-based K-beauty distribution specialist, also rose 317.6%, ranking high in the KOSDAQ market. Silicon2 sells K-beauty brand products to about 160 countries worldwide through its platform ‘Stylekorean.’

Other stocks with high increases include Taesung (468%), which is promoting secondary battery composite copper foil and glass substrate businesses as new ventures; Orient Precision (392%), linked to Lee Jae-myung, leader of the Democratic Party of Korea; and Jungang Advanced Materials (277%), which is engaged in secondary battery electrolyte manufacturing and lithium salt production and material distribution businesses.