Shares of KOSPI-listed Chinhung International were strong early on the 16th. Buying appears to be gathering on expectations that it will benefit from parent company Hyosung Heavy Industries' transformer capacity expansion, according to securities analysts.
As of 9:41 a.m. that day, Chinhung International was trading at 826 won, up 78 won (10.43%) from the previous session.
Chinhung International is in charge of the transformer expansion for parent company Hyosung Heavy Industries. Lee Chung-heon, a researcher at Value Finder, said, "Chinhung International, as a subsidiary of Hyosung Heavy Industries, has continuously won expansion projects in heavy industry such as transformers, proving solid group synergy," adding, "If Hyosung Heavy Industries proceeds with additional expansion, further benefits are expected."
The researcher said, "Recently, Hyosung Heavy Industries once again disclosed an investment plan for expansion," explaining, "In Jul. last year, it disclosed a plan worth 253.8 billion won to 'build a new transformer plant for high-voltage direct current (HVDC),' and in Feb. this year it disclosed a contract for 'construction of a high-voltage transformer HVDC plant' with Hyosung Heavy Industries as the client."
The transformer expansion at Hyosung Heavy Industries is expected to continue going forward. The researcher said, "Artificial intelligence (AI) is not only for increased convenience from simple technological advances but also an important tool in the power struggle between the United States and China," adding, "Recently, securing power has emerged as the top priority, drawing attention to manufacturers of power equipment including nuclear power, and Hyosung Heavy Industries likewise shows a backlog of orders trending upward."