[Featured Stock] Hyosung Heavy Industries Surges Over 10% on 'Record-Breaking' Strong Earnings

Hyosung Heavy Industries is showing a strong gain of over 10% on the morning of the 4th, fueled by its record-breaking quarterly performance. With expectations of continued strong results this year, securities firms are also raising their target stock prices one after another.

As of 10:24 a.m. on the same day, Hyosung Heavy Industries' stock price is trading at 494,500 KRW per share, up 10.5% compared to the previous close.

This is analyzed as a result of the quarterly consolidated earnings announced after the market closed the previous day far exceeding market expectations, followed by major securities firms raising their target stock prices. Hyosung Heavy Industries reported consolidated sales of 1.5715 trillion KRW and operating profit of 132.2 billion KRW for the fourth quarter. This represents an increase of 21.6% and 108.4% respectively compared to the previous year, marking an all-time high.

Securities firms are successively raising their target prices. IBK Investment & Securities raised Hyosung Heavy Industries' target price by 8.6%, from 580,000 KRW to 630,000 KRW, reflecting higher profit estimates. This implies nearly a 40% upside potential compared to the previous day's closing price. Kim Taehyun, a researcher at IBK Investment & Securities, forecasted that Hyosung Heavy Industries will continue its profitability improvement trend this year, recording sales of 5.5837 trillion KRW and operating profit of 464.4 billion KRW.

Shinhan Investment Corp. maintained a buy rating and raised the target price to 620,000 KRW. Lee Donghyun, a research fellow at Shinhan Investment Corp., stated, "The company achieved record-high results with stable growth in the fourth quarter of last year," adding, "With the upward revision of the base exchange rate, price increases, and increased order backlog leading to higher volume, operating profit is expected to increase by 40% this year."

Hana Securities, NH Investment & Securities, and Heungkuk Securities also raised their target prices to 600,000 KRW per share respectively. BNK Investment & Securities raised its target price by 31.8% to 590,000 KRW. Samsung Securities proposed a target price of 550,000 KRW per share, up 22.9% from before.

Han Youngsoo, team leader at Samsung Securities, explained, "Considering that one-time labor cost expenses were reflected, the actual performance exceeded market expectations by 29%," adding, "We are raising this year's profit forecast by 7% to reflect the profitability improvement trend." He also noted that although there has been a stock price adjustment trend for domestic and international power equipment companies due to the recent DeepSeek shock, Hyosung Heavy Industries' core ultra-high voltage division is not highly related to data centers.