[Market Focus] Hyosung TNC Rises on Expectations of Earnings Improvement

Hyosung TNC is showing strong performance. This is believed to be influenced by securities firms' analyses suggesting that the company's earnings improvement will continue in the second quarter of this year.

As of 2:10 p.m. on April 28, Hyosung TNC was trading at 231,000 won, up 17,500 won (8.20%).

Shinyoung Securities projected that Hyosung TNC's operating profit in the second quarter would reach 87.3 billion won, a 13% increase compared to the previous quarter.

Shin Hongjoo, a researcher at Shinyoung Securities, emphasized, "Spandex sales volume is expected to rise, and the operating rate at the Ningxia subsidiary is gradually increasing. In addition, domestic demand is anticipated to expand due to the stimulation of consumption in China. The cost structure is also improving, and a slight improvement in spread is expected. The quality of nylon transferred to Vietnam is also gradually improving, which is expected to reduce the deficit in nylon and polyester operations."

He further highlighted, "The three-year period of deficits in nylon and polyester operations is coming to an end and is expected to contribute to improved earnings. After test production of nylon in the first half and clearing of sluggish inventory, a full-fledged turnaround to profitability is anticipated from the second half of the year."