April 23, 2024

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[THE INVESTOR] Hyosung has growth momentum and will pick up in the third quarter, said Hana Financial Investment on July 21, maintaining a “buy” recommendation and 240,000 won (US$214.02) target price. 

Its earnings guidance widely missed market expectations, as it reflected 17 billion won loss from chemical inventory and 10 billion won opportunity loss in heavy industry unit, as well as unfavorable timing of commodity price hikes, said analyst Yoon Jae-seong.

In the third quarter, however, its earnings will take an upturn albeit slowly, and operating profit will reach 279.7 billion won, up 13 percent on-year, estimated the analyst. 

The scenario for spinning off its operating sector still is viable and could feed anticipation for stock price rise in the future, said Yoon.

By Hwang You-mee (glamazon@heraldcorp.com)