[Market Focus] TKG Huchems Rises 4.72% as DNT Facility Runs at Full Capacity

The stock price of TKG Huchems is on the rise as the production facilities for its main product, dinitrotoluene (DNT), are operating at maximum capacity for the first time in eight years, raising expectations for increased operating profit.

As of 9:03 a.m. on September 16, TKG Huchems was trading at 18,420 won, up 830 won (4.72%) from the previous trading day.

On this day, Yuanta Securities stated, "We are raising our operating profit forecast for TKG Huchems this year by 19% compared to the previous estimate of 65 billion won," while maintaining a 'Buy' investment opinion and a target price of 25,000 won.

Hwang Kyuwon, a researcher at Yuanta Securities, explained, "The facility with an annual production capacity of 300,000 tons of mononitrobenzene (MNB), which was expanded in the second half of last year, is now operating at over 90% utilization and contributing to profits. In addition, following a fire at a German competitor in July, production of another main product, DNT, is also being ramped up."

He further emphasized, "The main products are MNB (720,000 tons) and DNT (260,000 tons), both of which are raw materials for urethane. Notably, there has been a significant change in DNT sales in the second half of this year. Last month, the 260,000-ton DNT facility began operating at full capacity for the first time in eight years since 2017."