[Infostock Daily= Reporter An Hoe Hyun] Daishin Securities raised its target share price from 90,000 won to 105,000 won on the 16th, saying Hyosung secured investment funds through the sale of Hyosung Capital. The investment opinion remained 'BUY'.
Hyosung announced yesterday that it has selected a preferred bidder for the sale of Hyosung Capital, which owns 97% of the stake. Hyosung Capital acquired 322 billion won, and book value at the end of the first half of this year is 467.3 billion won.
Daishin Securities said, "The sale of Hyosung Capital is to meet the requirements for restrictions on the holding company under the Fair Trade Act. The sale price will be decided at more than 400 billion won."
"The sale of Hyosung Capital is positive because it has not been concerned about the end dividend due to sluggish earnings and secured investment resources for various new businesses," the company said, adding, "Hyosung Group will enter the Data Center business with global company, construction of a liquefied hydrogen plant through the establishment of JV with Linde Group in Germany and hydrogen charging station businesses."
In addition to the sale of Hyosung Capital, additional asset sales are expected to secure liquidity. "It will secure additional liquidity through the sale of HICO(US sales corporation) and the sale of part of Anyang factory site," the company predicted.
"HICO will be sold to Hyosung Power & Industrial Systems Performance Group, and about 10,000 pyeong out of a total of 75,000 pyeong of Anyang factory sites will be sold to Everyshow Co., Ltd.(Hyosung Power & Industrial Systems Performance Group holds a 40% stake and is planning to enter the data center business). The book value of Anyang plant site is about 478 billion won, which is about 64 billion won if the area of the site to be sold(about 13.3% of the total) is converted into an amount, It will be far above this," the company expected.
"Hyosung's participation in new businesses, which has secured enough cash due to stakes and asset sales, is likely to increase investors' interest," the company said, adding, "There is a possibility that investors will participate directly or indirectly in the construction of a liquefied hydrogen plant and charging station."
Reporter An Hoe Hyun ahh@infostock.co.kr
