Corporate Logo(source: hyosungheavyindustries.com)
On April 29, Mirae Asset Securities stated that Hyosung Heavy Industries (298040) is seeing an expansion of orders, particularly in the United States and Europe. The brokerage maintained its "Buy" rating and target price of 600,000 won.
Jo Yeon-joo, an analyst at Mirae Asset Securities, explained, “Amid expanding investment in 765kV-class ultra-high-voltage infrastructure in the Americas, Hyosung Heavy Industries’ U.S. manufacturing subsidiary has secured its first order for a 765kV ultra-high-voltage transformer,” adding, “An increase in high-margin orders centered on high-voltage, large-capacity products is expected.”
She further noted, “In the Indian market as well, orders are concentrating on high-priced products such as 800kV GIS circuit breakers,” and emphasized, “The proportion of overseas orders has expanded to 77% of new orders, leading to an increase in the average margin rate of the order backlog. Profitability improvement is expected during the future revenue recognition process.”
Mirae Asset Securities forecasts that Hyosung Heavy Industries’ revenue and operating profit for this year will reach 5.562 trillion won and 517 billion won, respectively, representing year-on-year increases of 13.7% and 42.5%.
Jo concluded, “Considering the profitability upgrades and margin improvements in the heavy industries division, there is a possibility for further re-rating,” and assessed, “The current valuation level presents an attractive entry point from a mid- to long-term perspective.”
*[KOSPI]Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 4.56 trillion won(as of April 28, 2025, closing price).
Corporate Logo(source: hyosungheavyindustries.com)
On April 29, Mirae Asset Securities stated that Hyosung Heavy Industries (298040) is seeing an expansion of orders, particularly in the United States and Europe. The brokerage maintained its "Buy" rating and target price of 600,000 won.
Jo Yeon-joo, an analyst at Mirae Asset Securities, explained, “Amid expanding investment in 765kV-class ultra-high-voltage infrastructure in the Americas, Hyosung Heavy Industries’ U.S. manufacturing subsidiary has secured its first order for a 765kV ultra-high-voltage transformer,” adding, “An increase in high-margin orders centered on high-voltage, large-capacity products is expected.”
She further noted, “In the Indian market as well, orders are concentrating on high-priced products such as 800kV GIS circuit breakers,” and emphasized, “The proportion of overseas orders has expanded to 77% of new orders, leading to an increase in the average margin rate of the order backlog. Profitability improvement is expected during the future revenue recognition process.”
Mirae Asset Securities forecasts that Hyosung Heavy Industries’ revenue and operating profit for this year will reach 5.562 trillion won and 517 billion won, respectively, representing year-on-year increases of 13.7% and 42.5%.
Jo concluded, “Considering the profitability upgrades and margin improvements in the heavy industries division, there is a possibility for further re-rating,” and assessed, “The current valuation level presents an attractive entry point from a mid- to long-term perspective.”
*[KOSPI]Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 4.56 trillion won(as of April 28, 2025, closing price).