[Infostock Daily= Reporter An Hoe Hyun] KB Securities expects Hyosung Advanced Materials' fourth-quarter earnings to exceed its forecast on the 28th. As a result, the target stock price was raised to 30,000 won, but the investment opinion remained 'Hold'.
Sales and operating profit for the fourth quarter are expected to reach 714.7 billion won and 27 billion won, respectively. This is an increase of 2.8% and 12.2% year-on-year, respectively, and is expected to exceed market forecasts.
"In the fourth quarter, Vietnam's spandex operating profit is expected to rise significantly to 9 billion won from the previous quarter," the company analyzed, adding, "It is because spandex prices have risen significantly due to a lack of supply since October."
"The fourth-quarter performance is positive, but it needs to improve the performance of its flagship business, tire reinforcements, in order to raise investment opinions," the company said, adding, "The operating profit of tire reinforcements has been on the decline for the third consecutive year since hitting 130.8 billion won in 2017."
Reporter An Hoe Hyun ahh@infostock.co.kr
