Hyosung Chemical, Expected profit growth by extending in Vietnam(Shinyoung Securities)

[Infostock Daily= Reporter An Hoe Hyun] Shinyoung Securities predicted on the 4th that Hyosung Chemical will be able to grow its profits in earnest from the third quarter of 2021 due to the effect of extension in Vietnam.

"The Vietnam project will be completed in June, and vertical integration of 'propane-propylene-PP' products is expected," the company analyzed, "Based on the volume, the production capacity of PP products doubled at the end of 2019."

Also, the company said, “It is expected to secure margins by stockpiling low-cost raw materials due to securing large-scale storage facilities with LPG storage facilities." On top of that, it is time for cost competitiveness of propane gas to rise again due to rising naphtha prices caused by rising oil prices.

Hyosung Chemical's operating profit for the fourth quarter of 2020, estimated by Shinyoung Securities, was 27.1 billion won, up 9% from the previous quarter. It is predicted that demand for PP products will be strong in 2021 due to one-time containers and vaccine syringes caused by COVID-19.

Reporter An Hoe Hyun ahh@infostock.co.kr