Hyosung surged more than 19% in early trading on the 6th from the previous session. The jump appears to be driven by gains in subsidiary Hyosung Heavy Industries and the spotlight on Hyosung's high-dividend policy, concentrating buying by investors.
As of 10:04 a.m. that day on the stock market, Hyosung was trading at 263,000 won, up 42,000 won (19%) from the previous session.
Analysts in the securities industry said holding company Hyosung is improving profitability as it benefits from strong results at key subsidiary Hyosung Heavy Industries.
That day, Daishin Securities raised its target price for Hyosung to 300,000 won from 230,000 won, an increase of about 30%.
Lee Kyung-yeon of Daishin Securities said, "We reflected the rise in the subsidiary's share price and the resolution of Hyosung Chemical's financial risk," adding, "There is also strong shareholder-return intent to continue the high-dividend policy."
Lee said, "Due to the recent sharp share-price increase from the highlighting of subsidiary equity value, the dividend yield on a market-price basis fell to 2.5% as of the previous session's close," but added, "With a structural boom continuing in front-end sectors such as power equipment, there is significant additional share-price upside based on fundamentals that exceeds the lowered dividend yield."