[Click eStock] "Hyosung Heavy Industries, Undervalued Compared to Growth Phase"

On the 14th, Hana Securities expected Hyosung Heavy Industries to maintain favorable order trends going forward and to overcome external uncertainties such as U.S. tariffs. The target stock price of 600,000 KRW and the investment opinion of 'Buy' were maintained.

Hyosung Heavy Industries is a leading domestic company in the power equipment sector, producing various power and industrial devices such as transformers, circuit breakers, high-voltage motors, and pumps.

Hana Securities forecasted that Hyosung Heavy Industries' first-quarter earnings would meet market expectations. The construction segment, which contributes relatively less to profits, is maintaining a stable trend, while the heavy industry segment continues an upward margin trend. In the North American market, where order unit prices are the highest recently, additional large-scale expansions appear to be under consideration, and it is expected to overcome various external uncertainties such as tariffs. Analyst Yoo Jae-sun analyzed, "Order trends are expected to be favorable as demand remains solid not only in North America but also in regions such as the Middle East and Europe."

Hana Securities projected that the unprecedented concern over U.S. tariff risk would not have a significant impact. The anti-dumping tariff announced in early April was confirmed at 0%, and there appears to be no risk going forward. Although tariffs imposed on steel products could increase product price volatility, it is expected that prices can be sufficiently passed on through negotiations with customers. He analyzed, "Fortunately, the recently concerning reciprocal tariffs have been temporarily suspended, but the issue has not been completely resolved. However, even if implemented, the sales volume recognized as U.S.-bound from the headquarters is not large, and since local production capacity in North America is continuously expanding, attention should be paid to relative stability." The Changwon plant is scheduled for expansion in the first half of this year, and the Memphis plant in the U.S. will be expanded next year, with expectations of simultaneous external growth and margin improvement.