April 20, 2024

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[THE INVESTOR] Hyosung Advanced Materials will post solid earnings this year, said KTB Investment and Securities on July 30, suggesting a “buy” recommendation and 225,000 won (US$201.96) target price.

Its revenue in June since it was spun off from Hyosung came in at 241.5 billion won with operating profit of 20.7 billion won and 8.6 percent operating profit ratio. The upward earnings momentum will be maintained in the latter half, said analyst Lee Heui-cheol.

Based on the solid market dominance in flagship tire cords sector as well as its unparalleled cost competitiveness, it can sell its products at a rate that reflects the increase in raw materials price. It will be able to raise the price further in the latter half. Meanwhile, sales of its subsidiary GST, global leader in air bag materials, is improving and loss from carbon fiber and aramid fiber is shrinking, he added. 

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