[Infostock Daily= Reporter An Hoe Hyun] Kiwoom Securities said on the 28th that Hyosung Advanced Materials' fourth-quarter performance will record an earning surprise.
"The operating profit of Hyosung Advanced Materials is expected to rise 191.4% to KRW 34.7 billion in the fourth quarter of last year, far exceeding the rapidly rising market expectations," the company explained, "Despite off-season factors and negative exchange rate factors for export stocks, the operation rate of tire reinforcement materials has risen and other sectors such as special fiber continue to have solid profitability, and the profitability of Vietnamese spandex is improving by a large margin," the company explained.
"The operating profit in the tire reinforcement materials sector is expected to increase 579.7% from the previous quarter to KRW 20.4 billion," the company explained, adding, "This is because the operation rate of Hyosung Advanced Materials’ tire reinforcement material plants at home and abroad is expected to rise due to increased sales of front-line automobiles and tire makers and the recovery of the European and U.S. auto markets, which are the main sources of demand, and the profitability of steel cord is expected to improve due to the relocation of domestic facilities to Vietnam."
"Operating profit in other sectors is expected to reach KRW 14.3 billion, up 60.5% QoQ," the company said, adding, "While Vietnam's spandex profits are expected to increase more than 2.5 times QoQ due to tight spandex supply and demand, special fiber sectors such as carbon and aramid are expected to maintain good performance."
Reporter An Hoe Hyun ahh@infostock.co.kr
