Kiwoom Securities predicted that Hyosung Chemical's performance in the second half of this year will fall short of market expectations due to rising prices of liquefied petroleum gas (LPG) and some shutdowns.
However, it said it will show a flexible improvement in performance at a low point in the third quarter of this year due to full-scale operation of Vietnam's expansion and improved demand due to improved vaccine penetration.
As a result, the investment opinion 'buy' and target price remained at 570,000 won.
Hyosung Chemical's performance in the second half of this year is expected to slow down compared to market forecasts (consensus).
"Although we initially predicted LPG prices to fall in the third quarter, the price of LPG input has risen due to rising gas and oil prices, and early regular repair caused by the domestic Rofantal hydrogen plant (PDH) fire is expected to incur some opportunity costs," Kiwoom Securities said.
"The decline in the utilization rate of customers due to the spread of Vietnam's new coronavirus infection (COVID-19) will also be affected.". On the other hand, Kiwoom Securities said Hyosung Chemical's corporate value will improve from 2022 to 2023 due to its low third quarter of this year.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
