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[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities judged on Hyosung T&C on the 30th that major indicators such as spandex prices and spreads have reached a low point. The target stock price was 440,000 won, and the investment opinion 'buy' was maintained.
Currently, the price of spandex is $ 4,140 per ton, close to the historic low of $ 4,002 in July 2020. The price of raw material BDO fell to the production cost level at $ 1,300 per ton.
"The spandex spread is also at the historical bottom, leaving more room for improvement than room for further decline. We expect to improve the spread gradually from the second quarter as front companies are stockpiling inventory due to the reach of the price bottom," said NH Investment & Securities.
"The oligopoly in the industry is still underway," NH Investment & Securities said. "The operation rate of spandex in China has fallen to 76% from 83% in November last year, but the operation rate of Hyosung T&C has remained at 90%."
Hyosung T&C's sales and operating profit in the fourth quarter of last year fell below the market consensus of 1.8 trillion won and 29 billion won, respectively.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
