Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩331,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Chemicals industry in South Korea. Total returns to shareholders of 9.2% over the past three years. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩317,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Chemicals industry in South Korea. Total returns to shareholders of 2.0% over the past three years. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to ₩273,000, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 9x in the Chemicals industry in South Korea. Total loss to shareholders of 26% over the past three years. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩311,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Chemicals industry in South Korea. Total loss to shareholders of 11% over the past three years. New Risk • May 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risks Dividend is not well covered by earnings (148% payout ratio). Profit margins are more than 30% lower than last year (0.4% net profit margin). Major Estimate Revision • Apr 29
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from ₩8.05b to ₩8.86b. EPS estimate increased from ₩32,194 to ₩56,034 per share. Net income forecast to grow 1,195% next year vs 61% growth forecast for Chemicals industry in South Korea. Consensus price target up from ₩560,000 to ₩643,333. Share price was steady at ₩530,000 over the past week. Announcement • Apr 25
Hyosung TNC Corporation to Report Q1, 2026 Results on Apr 27, 2026 Hyosung TNC Corporation announced that they will report Q1, 2026 results at 9:00 AM, Korea Standard Time on Apr 27, 2026 Price Target Changed • Apr 14
Price target increased by 11% to ₩560,000 Up from ₩503,333, the current price target is an average from 3 analysts. New target price is 13% above last closing price of ₩496,000. Stock is up 135% over the past year. The company is forecast to post earnings per share of ₩32,194 for next year compared to ₩2,517 last year. Reported Earnings • Mar 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: ₩2,517 (down from ₩31,175 in FY 2024). Revenue: ₩7.69t (down 1.0% from FY 2024). Net income: ₩10.8b (down 92% from FY 2024). Profit margin: 0.1% (down from 1.7% in FY 2024). Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 87%. Revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩322,000, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 17% over the past three years. Announcement • Feb 27
Hyosung TNC Corporation, Annual General Meeting, Mar 19, 2026 Hyosung TNC Corporation, Annual General Meeting, Mar 19, 2026, at 11:00 Tokyo Standard Time. Location: auditorium, 119, mapo-daero, mapo-gu, seoul South Korea Major Estimate Revision • Jan 23
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩22,622 to ₩19,334 per share. Revenue forecast steady at ₩7.84b. Net income forecast to grow 91% next year vs 52% growth forecast for Chemicals industry in South Korea. Consensus price target up from ₩290,000 to ₩436,667. Share price rose 26% to ₩363,000 over the past week. Major Estimate Revision • Jan 22
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩22,622 to ₩19,334 per share. Revenue forecast steady at ₩7.84b. Net income forecast to grow 91% next year vs 52% growth forecast for Chemicals industry in South Korea. Consensus price target up from ₩290,000 to ₩436,667. Share price rose 46% to ₩388,500 over the past week. New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (104% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). Profit margins are more than 30% lower than last year (0.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩266,000, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total loss to shareholders of 25% over the past three years. Price Target Changed • Jan 10
Price target decreased by 13% to ₩290,000 Down from ₩333,333, the current price target is an average from 3 analysts. New target price is 27% above last closing price of ₩229,000. Stock is down 2.1% over the past year. The company is forecast to post earnings per share of ₩22,622 for next year compared to ₩31,175 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩10,000 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 02 April 2026. Payout ratio is a comfortable 67% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.3%). Reported Earnings • Nov 19
Third quarter 2025 earnings released: EPS: ₩1,879 (vs ₩5,256 in 3Q 2024) Third quarter 2025 results: EPS: ₩1,879 (down from ₩5,256 in 3Q 2024). Revenue: ₩2.01t (up 3.8% from 3Q 2024). Net income: ₩8.06b (down 65% from 3Q 2024). Profit margin: 0.4% (down from 1.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 08
Dividend of ₩10,000 announced Dividend of ₩10,000 is the same as last year. Ex-date: 29th December 2025 Payment date: 2nd April 2026 Dividend yield will be 5.0%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (55% earnings payout ratio) but not covered by cash flows (137% cash payout ratio). The dividend has increased by an average of 47% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 164% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 07
Hyosung TNC Corporation announces Annual dividend, payable on April 02, 2026 Hyosung TNC Corporation announced Annual dividend of KRW 10000.0000 per share payable on April 02, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Major Estimate Revision • Nov 04
Consensus EPS estimates fall by 40% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩27,297 to ₩16,395 per share. Revenue forecast steady at ₩7.69b. Net income forecast to grow 92% next year vs 51% growth forecast for Chemicals industry in South Korea. Consensus price target broadly unchanged at ₩326,667. Share price fell 5.2% to ₩208,500 over the past week. Price Target Changed • Oct 01
Price target decreased by 9.1% to ₩333,333 Down from ₩366,667, the current price target is an average from 3 analysts. New target price is 57% above last closing price of ₩212,500. Stock is down 32% over the past year. The company is forecast to post earnings per share of ₩29,515 for next year compared to ₩31,175 last year. Price Target Changed • Aug 22
Price target increased by 10% to ₩366,667 Up from ₩332,500, the current price target is an average from 3 analysts. New target price is 67% above last closing price of ₩219,000. Stock is down 26% over the past year. The company is forecast to post earnings per share of ₩30,123 for next year compared to ₩31,175 last year. Reported Earnings • Aug 20
Second quarter 2025 earnings released: EPS: ₩2,845 (vs ₩9,906 in 2Q 2024) Second quarter 2025 results: EPS: ₩2,845 (down from ₩9,906 in 2Q 2024). Revenue: ₩1.89t (down 4.7% from 2Q 2024). Net income: ₩12.2b (down 71% from 2Q 2024). Profit margin: 0.6% (down from 2.2% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Price Target Changed • Jul 15
Price target increased by 8.4% to ₩355,000 Up from ₩327,500, the current price target is an average from 4 analysts. New target price is 35% above last closing price of ₩263,500. Stock is down 25% over the past year. The company is forecast to post earnings per share of ₩33,363 for next year compared to ₩31,175 last year. Price Target Changed • Apr 16
Price target decreased by 14% to ₩340,000 Down from ₩394,000, the current price target is an average from 4 analysts. New target price is 63% above last closing price of ₩209,000. Stock is down 39% over the past year. The company is forecast to post earnings per share of ₩33,086 for next year compared to ₩31,175 last year. Reported Earnings • Mar 13
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: ₩31,175 (up from ₩21,595 in FY 2023). Revenue: ₩7.78t (up 3.3% from FY 2023). Net income: ₩134.5b (up 44% from FY 2023). Profit margin: 1.7% (up from 1.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Feb 28
Hyosung TNC Corporation, Annual General Meeting, Mar 20, 2025 Hyosung TNC Corporation, Annual General Meeting, Mar 20, 2025, at 13:00 Tokyo Standard Time. Location: auditorium, 119, mapo-daero, mapo-gu, seoul South Korea Buy Or Sell Opportunity • Feb 25
Now 23% undervalued Over the last 90 days, the stock has risen 7.7% to ₩216,000. The fair value is estimated to be ₩278,901, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.4% over the last 3 years. Earnings per share has declined by 86%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. New Risk • Feb 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (65% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.6% average weekly change). Buy Or Sell Opportunity • Feb 08
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to ₩219,500. The fair value is estimated to be ₩284,661, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.4% over the last 3 years. Earnings per share has declined by 86%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Major Estimate Revision • Feb 05
Consensus EPS estimates fall by 10%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from ₩8.02b to ₩8.16b. EPS estimate fell from ₩36,789 to ₩33,086 per share. Net income forecast to shrink 0.7% next year vs 62% growth forecast for Chemicals industry in South Korea . Consensus price target down from ₩394,000 to ₩368,000. Share price fell 2.8% to ₩225,500 over the past week. Price Target Changed • Jan 10
Price target decreased by 10% to ₩403,000 Down from ₩448,000, the current price target is an average from 5 analysts. New target price is 74% above last closing price of ₩232,000. Stock is down 30% over the past year. The company is forecast to post earnings per share of ₩31,384 for next year compared to ₩21,595 last year. Upcoming Dividend • Dec 20
Upcoming dividend of ₩10,000 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 02 April 2025. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 4.2%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.2%). Major Estimate Revision • Dec 17
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩37,316 to ₩31,808 per share. Revenue forecast steady at ₩7.70b. Net income forecast to grow 13% next year vs 64% growth forecast for Chemicals industry in South Korea. Consensus price target down from ₩448,000 to ₩434,000. Share price rose 9.7% to ₩244,000 over the past week. Price Target Changed • Dec 16
Price target decreased by 7.3% to ₩434,000 Down from ₩468,000, the current price target is an average from 5 analysts. New target price is 77% above last closing price of ₩245,000. Stock is down 35% over the past year. The company is forecast to post earnings per share of ₩36,895 for next year compared to ₩21,595 last year. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩245,500, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Chemicals industry in South Korea. Total loss to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to ₩214,000, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 8x in the Chemicals industry in South Korea. Total loss to shareholders of 51% over the past three years. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩326,000, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Chemicals industry in South Korea. Total loss to shareholders of 40% over the past three years. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ₩9,906 (vs ₩4,376 in 2Q 2023) Second quarter 2024 results: EPS: ₩9,906 (up from ₩4,376 in 2Q 2023). Revenue: ₩1.98t (up 2.8% from 2Q 2023). Net income: ₩42.7b (up 126% from 2Q 2023). Profit margin: 2.2% (up from 1.0% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩268,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Chemicals industry in South Korea. Total loss to shareholders of 63% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩10,575 (vs ₩7,400 in 1Q 2023) First quarter 2024 results: EPS: ₩10,575 (up from ₩7,400 in 1Q 2023). Revenue: ₩1.88t (up 1.0% from 1Q 2023). Net income: ₩45.6b (up 43% from 1Q 2023). Profit margin: 2.4% (up from 1.7% in 1Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 55 percentage points per year, which is a significant difference in performance. Major Estimate Revision • May 05
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ₩7.55b to ₩7.70b. EPS estimate increased from ₩36,129 to ₩40,851 per share. Net income forecast to grow 89% next year vs 24% growth forecast for Chemicals industry in South Korea. Consensus price target up from ₩461,667 to ₩476,667. Share price rose 5.1% to ₩372,500 over the past week. Reported Earnings • Mar 12
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: ₩21,595 (up from ₩2,686 in FY 2022). Revenue: ₩7.53t (down 15% from FY 2022). Net income: ₩93.2b (up ₩81.6b from FY 2022). Profit margin: 1.2% (up from 0.1% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 2.9% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Mar 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to ₩283,500. The fair value is estimated to be ₩354,751, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 3.3% in 2 years. Earnings are forecast to grow by 177% in the next 2 years. Major Estimate Revision • Jan 30
Consensus EPS estimates fall by 32% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩46,149 to ₩31,552 per share. Revenue forecast steady at ₩7.75b. Net income forecast to grow 74% next year vs 73% growth forecast for Chemicals industry in South Korea. Consensus price target of ₩461,667 unchanged from last update. Share price fell 4.1% to ₩306,500 over the past week. Buy Or Sell Opportunity • Jan 25
Now 20% overvalued The stock has been flat over the last 90 days, currently trading at ₩327,500. The fair value is estimated to be ₩272,773, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 4.5% in 2 years. Earnings are forecast to grow by 231% in the next 2 years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩10,000 per share at 2.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 04 April 2024. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.8%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩2,577 (vs ₩21,962 loss in 3Q 2022) Third quarter 2023 results: EPS: ₩2,577 (up from ₩21,962 loss in 3Q 2022). Revenue: ₩1.97t (down 9.1% from 3Q 2022). Net income: ₩11.1b (up ₩105.9b from 3Q 2022). Profit margin: 0.6% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Price Target Changed • Oct 18
Price target decreased by 8.7% to ₩475,000 Down from ₩520,000, the current price target is an average from 4 analysts. New target price is 53% above last closing price of ₩311,000. Stock is up 7.2% over the past year. The company is forecast to post earnings per share of ₩41,359 for next year compared to ₩2,686 last year. Price Target Changed • Oct 06
Price target decreased by 9.3% to ₩486,667 Down from ₩536,667, the current price target is an average from 3 analysts. New target price is 51% above last closing price of ₩321,500. Stock is up 15% over the past year. The company is forecast to post earnings per share of ₩41,359 for next year compared to ₩2,686 last year. Reported Earnings • Mar 10
Full year 2022 earnings released: EPS: ₩2,686 (vs ₩178,503 in FY 2021) Full year 2022 results: EPS: ₩2,686 (down from ₩178,503 in FY 2021). Revenue: ₩8.88t (up 3.3% from FY 2021). Net income: ₩11.6b (down 99% from FY 2021). Profit margin: 0.1% (down from 9.0% in FY 2021). Revenue is expected to decline by 2.0% p.a. on average during the next 2 years, while revenues in the Chemicals industry in South Korea are expected to grow by 15%. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Feb 03
Price target increased by 13% to ₩510,000 Up from ₩450,000, the current price target is provided by 1 analyst. New target price is 18% above last closing price of ₩431,000. Stock is up 0.9% over the past year. The company is forecast to post earnings per share of ₩1,614 for next year compared to ₩178,503 last year. Upcoming Dividend • Dec 21
Upcoming dividend of ₩50,000 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 05 April 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 15%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.4%). Major Estimate Revision • Dec 14
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from ₩2,638 to ₩1,614 per share. Revenue forecast steady at ₩9.21b. Net income forecast to shrink 9.4% next year vs 25% growth forecast for Chemicals industry in South Korea . Consensus price target up from ₩415,000 to ₩450,000. Share price rose 4.7% to ₩368,500 over the past week. Price Target Changed • Nov 16
Price target decreased to ₩426,667 Down from ₩460,000, the current price target is an average from 3 analysts. New target price is 18% above last closing price of ₩362,500. Stock is down 34% over the past year. The company is forecast to post earnings per share of ₩2,638 for next year compared to ₩178,503 last year. Announcement • Sep 29
Hyosung TNC Announces Success in Developing and Using Nylon for Liner Material of Hydrogen Vehicle Fuel Tanks with its Own Technology Hyosung TNC announced on the 7th that it has succeeded in developing and using nylon for the liner material of hydrogen vehicle fuel tanks with its own technology. Hyosung TNC's nylon material is superior to conventional metal and high-density polyethylene (HDPE) liner materials in terms of lightweight, gas barrier, and impact resistance. The nylon liner material developed by Hyosung TNC is 70% lighter than metal and 50% lighter than HDPE and gas barrier property that prevents leakage of hydrogen gas is also 30% higher than metal and 50% higher than HDPE. Metal liner is heavy and has a high risk of brittleness when exposed to hydrogen for a long period of time, whereas nylon liner has low hydrogen absorption and air permeability, so there is no risk of being brittleness. HDPE liners are used as high-pressure containers at 400bar levels, but cannot withstand the 700bar pressure required by typical hydrogen electric vehicles. In addition, the hydrogen container liner must be able to withstand rapidly changing temperature fluctuation caused by frequent charging and discharging of hydrogen and the nylon liner has excellent impact resistance against to it from -40 to 85 degrees Celsius. The success of this development is significant in that it has laid the foundation for Hyosung TNC to enter the nylon liner market, which has been monopolized by foreign companies, for the first time as a domestic company. The nylon liner is expected to contribute to the completion of Hyosung's hydrogen value chain. Hyosung TNC's nylon-applied hydrogen container passed the hydrogen container international quality standard (UN/ECE R134) in June 2022, and has been equipped with function, quality and technical perfection as a liner material. It is also planned to conduct commercial tests in cooperation with hydrogen fuel tank manufacturers and automakers. Hyosung TNC is planning to expand the application of nylon as a liner material from tube trailers of commercial trucks to CNG and hydrogen vessels sailing the seas around the world, such as Antarctica and the Equator, by enhancing the impact and heat resistance range from -60 to 90 degrees Celsius. In addition, as Hyosung TNC developed the world's first recycled nylon fiber technology from recycled fishing nets discarded in the sea, it plans to expand the eco-friendly plastic material market by applying recycled nylon to a liner material in the future. Reported Earnings • Aug 15
Second quarter 2022 earnings released: EPS: ₩6,010 (vs ₩54,639 in 2Q 2021) Second quarter 2022 results: EPS: ₩6,010 (down from ₩54,639 in 2Q 2021). Revenue: ₩2.56t (up 20% from 2Q 2021). Net income: ₩25.9b (down 89% from 2Q 2021). Profit margin: 1.0% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 3.7% compared to a 24% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 05
Price target decreased to ₩515,000 Down from ₩660,000, the current price target is an average from 4 analysts. New target price is 60% above last closing price of ₩322,000. Stock is down 63% over the past year. The company is forecast to post earnings per share of ₩53,924 for next year compared to ₩178,503 last year. Major Estimate Revision • Aug 04
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩9.36b to ₩9.86b. EPS estimate fell from ₩80,951 to ₩53,924 per share. Net income forecast to shrink 64% next year vs 11% growth forecast for Chemicals industry in South Korea . Consensus price target down from ₩660,000 to ₩632,000. Share price was steady at ₩318,500 over the past week. Price Target Changed • Jul 07
Price target decreased to ₩660,000 Down from ₩736,000, the current price target is an average from 5 analysts. New target price is 99% above last closing price of ₩331,500. Stock is down 63% over the past year. The company is forecast to post earnings per share of ₩80,951 for next year compared to ₩178,503 last year. Reported Earnings • Mar 12
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: ₩178,503 (up from ₩31,698 in FY 2020). Revenue: ₩8.60t (up 67% from FY 2020). Net income: ₩770.4b (up 463% from FY 2020). Profit margin: 9.0% (up from 2.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 1.8% compared to a 22% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jan 30
Price target decreased to ₩896,667 Down from ₩1,005,000, the current price target is an average from 5 analysts. New target price is 116% above last closing price of ₩416,000. Stock is up 39% over the past year. The company is forecast to post earnings per share of ₩204,922 for next year compared to ₩31,698 last year. Major Estimate Revision • Jan 28
Consensus EPS estimates fall by 32% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from ₩8.46b to ₩7.78b. EPS estimate also fell from ₩153,525 per share to ₩104,613 per share. Net income forecast to shrink 20% next year vs 36% growth forecast for Chemicals industry in South Korea . Consensus price target down from ₩1,005,000 to ₩978,833. Share price fell 13% to ₩416,000 over the past week. Price Target Changed • Jan 27
Price target decreased to ₩978,833 Down from ₩1,075,500, the current price target is an average from 6 analysts. New target price is 136% above last closing price of ₩415,500. Stock is up 39% over the past year. The company is forecast to post earnings per share of ₩204,922 for next year compared to ₩31,698 last year. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩415,500, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total returns to shareholders of 154% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩5,000 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 04 April 2022. Payout ratio is a comfortable 3.1% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improved over the past week After last week's 17% share price gain to ₩597,000, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 240% over the past three years. Major Estimate Revision • Aug 03
Consensus revenue estimates increase to ₩7.87b The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from ₩7.06b to ₩7.87b. EPS estimate increased from ₩153,175 to ₩189,131 per share. Net income forecast to grow 200% next year vs 43% growth forecast for Luxury industry in South Korea. Consensus price target up from ₩1,068,667 to ₩1,108,857. Share price was steady at ₩867,000 over the past week. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improved over the past week After last week's 18% share price gain to ₩834,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Luxury industry in South Korea. Total returns to shareholders of 601% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩1,028,781 per share. Price Target Changed • May 06
Price target increased to ₩834,250 Up from ₩709,500, the current price target is an average from 4 analysts. New target price is 9.3% above last closing price of ₩763,000. Stock is up 467% over the past year. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improved over the past week After last week's 22% share price gain to ₩700,000, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Luxury industry in South Korea. Total returns to shareholders of 503% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩590,350 per share. Major Estimate Revision • Mar 27
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from ₩6.54b to ₩6.45b. EPS estimate rose from ₩77,414 to ₩90,756. Net income forecast to grow 187% next year vs 49% growth forecast for Luxury industry in South Korea. Consensus price target up from ₩531,000 to ₩606,000. Share price rose 12% to ₩611,000 over the past week. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 29% share price gain to ₩553,000, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Luxury industry in South Korea. Total returns to shareholders of 472% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩553,213 per share. Reported Earnings • Mar 13
Full year 2020 earnings released: EPS ₩31,698 (vs ₩21,569 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: ₩5.16t (down 14% from FY 2019). Net income: ₩136.8b (up 47% from FY 2019). Profit margin: 2.7% (up from 1.6% in FY 2019). The increase in margin was driven by lower expenses. Is New 90 Day High Low • Mar 12
New 90-day high: ₩483,000 The company is up 153% from its price of ₩191,000 on 11 December 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩470,617 per share. Announcement • Feb 25
Hyosung TNC Corporation, Annual General Meeting, Mar 18, 2021 Hyosung TNC Corporation, Annual General Meeting, Mar 18, 2021, at 14:00 Korea Standard Time. Location: Auditorium, B1F, Hyosung Building, 119 Mapo-daer (Gongdeok-dong), Mapo-gu Seoul South Korea Agenda: To consider approval of financial statements; to consider partial amendment to the articles of incorporation; to consider appointment of directors; and to consider approval of the compensation limit for directors.