[Click e-Stock] "Hyosung Heavy Industries Expected to Meet Q3 Earnings Expectations"

On September 25, Daishin Securities analyzed that Hyosung Heavy Industries' third-quarter performance this year is expected to meet market expectations. The target stock price was raised to 1.85 million won.

Hyosung Heavy Industries is estimated to achieve sales of 1.4 trillion won and operating profit of 155.7 billion won in the third quarter of this year. This represents an increase of 23% and 40%, respectively, compared to the same period last year.

Heo Minho, a researcher at Daishin Securities, explained, "The heavy industries division is expected to record sales of 960 billion won and operating profit of 141.7 billion won," adding, "This is an increase of 36% and 43%, respectively, year-on-year."

He further added, "We expect to pass on more than 50% of tariffs," and "Transformers are being supplied through the Memphis plant in the United States, and prices are also rising in regions outside the United States."

Researcher Heo analyzed, "This year, following orders for ultra-high voltage transformers and circuit breakers in Europe-including the United Kingdom, France, Spain, and Germany-Hyosung Heavy Industries also won a package order worth over 200 billion won in the United States for 765kV ultra-high voltage transformers, reactors, and circuit breakers." He also emphasized, "Following ultra-high voltage transformers, the supply shortage is spreading to ultra-high voltage circuit breakers, and Hyosung Heavy Industries' competitiveness is being confirmed in this segment as well."

He predicted, "With Hyosung Heavy Industries being the only company in the United States with 765kV transformer production capacity and securing competitiveness in ultra-high voltage circuit breakers, large-scale package orders-including reactors and hybrid STATCOMs (Static Synchronous Compensators) as well as other ultra-high voltage power equipment-are expected to increase."