On the 28th, Hyosung shot straight to the upper limit (the top of the daily price cap) early in the session. As Hyosung Heavy Industries' share price surged, the appeal of equity-method gains appeared to increase.
As of 9:11 a.m. that day on the Korea Exchange, Hyosung was trading at 224,500 won, up 20,000 won (9.78%) from the previous session. Right after the open, it rose to the upper limit of 265,500 won to hit a 1-year high, but later gave back part of the gains.
As the share price jumped in a short period, the Korea Exchange (KRX) triggered a static volatility interruption (VI) and applied call auction trading for two minutes. The static VI is a mechanism activated when the share price surges or plunges by about ±10% or more compared with the previous close, designed to mitigate excessive price swings.
With Hyosung Heavy Industries' share price soaring recently, the equity-method gains of Hyosung, the largest shareholder, are drawing renewed attention. Hyosung Heavy Industries posted a gain of more than 700% over the past year as its competitiveness stood out on the back of rising demand for power equipment in North America. Hyosung holds 32.47% equity in Hyosung Heavy Industries.
Lee Kyung-yeon, a researcher at Daishin Securities, said, "Hyosung Heavy Industries, an equity-method subsidiary, is sustaining earnings growth thanks to robust global demand for power infrastructure, and the resulting share price increase is feeding through to higher net asset value (NAV)," and added, "On top of that, Hyosung Chemical's swing to profit and a reduction in equity-method losses are also expected." Accordingly, the 6-month target price was set at 230,000 won.