Corporate Logo(source: hyosungheavyindustries.com)
Shinhan Securities significantly raised its target price for Hyosung Heavy Industries (298040) on July 28, citing stronger-than-expected earnings driven by a surge in profitability from its power equipment business.
For the second quarter, the company reported consolidated revenue of 1.5253 trillion won and operating profit of 164.2 billion won, representing year-on-year increases of 27.8% and 161.9%, respectively. The operating profit marked the highest on record for a single quarter.
Research analyst Dongheon Lee commented, “The company delivered a positive earnings surprise due to a 'quantum jump' in the power equipment division,” adding, “Despite uncertainty surrounding U.S. tariffs, the company achieved record-high orders, underscoring its strength in a supplier-driven market.”
Lee raised his previous target price from 620,000 won, set in February, to 1.32 million won — an increase of 113%. Shares of Hyosung Heavy Industries have recently surged, closing at 1.125 million won as of July 25.
“The company is in a historic growth phase, and we continue to recommend a ‘Buy,’” Lee added.
The heavy industries segment posted revenue of 1.0611 trillion won, up 43% from a year earlier, while operating profit jumped 159% to 168.5 billion won. The operating margin rose by 7.1 percentage points to 15.9%.
“All indicators reached record highs,” Lee noted. “The U.S. subsidiary’s operating margin exceeded 35%, up from 29.5% in the first quarter. While the construction division underperformed, the growth in the power equipment business is far more significant.”
*[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 10.49 trillion won (as of July 25, 2025, closing price).
Corporate Logo(source: hyosungheavyindustries.com)
Shinhan Securities significantly raised its target price for Hyosung Heavy Industries (298040) on July 28, citing stronger-than-expected earnings driven by a surge in profitability from its power equipment business.
For the second quarter, the company reported consolidated revenue of 1.5253 trillion won and operating profit of 164.2 billion won, representing year-on-year increases of 27.8% and 161.9%, respectively. The operating profit marked the highest on record for a single quarter.
Research analyst Dongheon Lee commented, “The company delivered a positive earnings surprise due to a 'quantum jump' in the power equipment division,” adding, “Despite uncertainty surrounding U.S. tariffs, the company achieved record-high orders, underscoring its strength in a supplier-driven market.”
Lee raised his previous target price from 620,000 won, set in February, to 1.32 million won — an increase of 113%. Shares of Hyosung Heavy Industries have recently surged, closing at 1.125 million won as of July 25.
“The company is in a historic growth phase, and we continue to recommend a ‘Buy,’” Lee added.
The heavy industries segment posted revenue of 1.0611 trillion won, up 43% from a year earlier, while operating profit jumped 159% to 168.5 billion won. The operating margin rose by 7.1 percentage points to 15.9%.
“All indicators reached record highs,” Lee noted. “The U.S. subsidiary’s operating margin exceeded 35%, up from 29.5% in the first quarter. While the construction division underperformed, the growth in the power equipment business is far more significant.”
*[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 10.49 trillion won (as of July 25, 2025, closing price).