Hyosung Heavy Industries is strong in early trading on the 4th. Brokerages have recently issued a string of upbeat earnings outlook reports, drawing in buyers.
As of 9:25 a.m. that day, Hyosung Heavy Industries was trading at 2,459,000 won, up 131,000 won (5.63%) from the previous trading day. It climbed to as high as 2,492,000 won intraday, setting a 1-year high.
Hyosung Heavy Industries posted 1.6241 trillion won in revenue and 219.8 billion won in operating profit in the third quarter of this year. That is up 42% and 97%, respectively, from a year earlier.
NH Investment & Securities said in a report the previous day that Hyosung Heavy Industries is expected to benefit amid expanded U.S. utility investment and a seller's market. It also said the company is likely to achieve high profitability thanks to a larger share of revenue from North America and Europe over the mid to long term. It therefore raised its target price 100% to 3 million won from 1.5 million won.
Shinhan Investment & Securities also expected the stock could reach 3 million won over the mid to long term. Lee Dong-heon, a research fellow at Shinhan Investment & Securities, said, "Even with North American tariffs reflected, the profit margin of power equipment is surging, and with construction stabilizing, the company posted record results," adding, "Considering the share of the North American backlog (53%) versus the revenue share (26%), profit growth is achievable for the next several years."