Hyosung Heavy Industries is showing strong stock performance as it appears to have exceeded market expectations, recording its largest quarterly performance.
Hyosung Heavy Industries shares were traded at 483,000 won on the KOSPI market at 9:16 a.m. on the 4th. The stock price rose 7.93% (35,500 won) from the previous day. During the early trading, the stock price even rose to 492,000 won.
The performance expectations seem to have stimulated investor sentiment. Hyosung Heavy Industries reported a consolidated revenue of 1.5715 trillion won and an operating profit of 132.2 billion won for the fourth quarter (October to December) of last year, which was approximately 8% higher than market expectations.
Han Young-soo, a researcher at Samsung Securities, noted, "Considering that a one-time expense of 26 billion won related to performance-based bonuses and ordinary wages was reflected in the fourth quarter of last year, this is a strong performance that exceeds market expectations by 29%."
Securities firms expect that Hyosung Heavy Industries' core product, the ultra-high-voltage transformer business, will continue to grow this year and have raised their target prices.
On that day, six domestic securities firms raised their target prices for Hyosung Heavy Industries, with IBK Securities having the highest at 630,000 won, followed by Shinhan Investment Corp. at 620,000 won; Hana Financial Investment and NH Investment & Securities at 600,000 won; BNK Securities at 590,000 won; and Samsung Securities at 550,000 won.
Hyosung Heavy Industries plans to expand its production capacity through expansion. The Changwon plant is scheduled to be expanded by the first half of this year, while the Memphis plant in the United States is expected to be completed in 2026.
Lee Sang-hun, a researcher at BNK Securities, said, "Hyosung Heavy Industries plans to expand its production capacity by about 40% with its previously announced expansion investment, and it is also considering additional investments in light of the inauguration of the second Trump administration in the United States."