[Market Focus] Hyosung TNC Jumps 11% on Visible Spandex Price Hike

On January 21, Hyosung TNC shares are showing strong performance. This is due to expectations of improved earnings, driven by both the potential exit of Chinese competitors from the market and the increase in spandex prices.

As of 10:05 a.m. on this day, Hyosung TNC is trading at 324,500 won, up 32,500 won (11.13%) from the previous trading day.

Recently, it was reported that Chinese spandex manufacturer Zhuji Huahai has filed for bankruptcy protection with the court. This has fueled investor sentiment with the expectation that Hyosung TNC will benefit as a result.

Additionally, the visible increase in selling prices is expected to boost profitability.

On January 21, Lee Jinmyung, a researcher at Shinhan Investment & Securities, stated, "According to the China Chemical Fiber Association, spandex manufacturers notified their clients of price increases yesterday, and there is a possibility of further hikes. Considering the spread increase due to higher selling prices, annual operating profit is expected to improve by 44 billion won. If we also factor in additional price increases and the expansion of new subsidiaries in China (with high cost competitiveness), Hyosung TNC is expected to maximize profit leverage compared to its competitors."

Lee raised the target price for Hyosung TNC to 500,000 won, a 67% increase from the previous target.