Why You Should Buy Hyosung Heavy Industries Stock Now
Why You Should Buy Hyosung Heavy Industries Stock Now
Hyosung Heavy Industries (298040) is an electric equipment company that produces and sells transformers, circuit breakers, motors, gears, etc. It also entered the construction business and is pursuing various projects to complete the hydrogen value chain. In this article, we will look at the advantages and prospects of Hyosung Heavy Industries stock.
Advantages of Hyosung Heavy Industries Stock
The advantages of Hyosung Heavy Industries stock are as follows.
- Leading company in hydrogen economy: Hyosung Heavy Industries is completing the hydrogen value chain from hydrogen production to storage tanks. In particular, it developed and commercialized the world’s first 700 bar high-pressure hydrogen storage tank. It is also actively involved in the construction and operation of hydrogen charging stations. If the hydrogen economy is activated, the profitability and growth potential of Hyosung Heavy Industries are expected to improve significantly.
- Expanding market share in power equipment market: Hyosung Heavy Industries also shows strong competitiveness in the power equipment market. Especially in the transformer field, it is the domestic leader and also receives orders from overseas markets such as the United States, Middle East, Southeast Asia, etc. It is also developing 170kV 50kA GIS and 154kV Shunt Reactor, compact-type transformers, which are regarded as next-generation power equipment. As power demand increases and energy transition accelerates, Hyosung Heavy Industries’ market share is expected to increase further.
- Securing new growth engines through venture investment: Hyosung Heavy Industries is actively investing in ventures under the leadership of Chairman Cho Hyun-joon. Recently, it has invested in promising startups in fields such as artificial intelligence (AI), bio, fintech, etc. Through this, it can acquire new business models and technologies, and develop innovative products and services.
Prospects of Hyosung Heavy Industries Stock
The prospects of Hyosung Heavy Industries stock are as follows.
- Expectation of performance improvement: Hyosung Heavy Industries recorded sales of 846.5 billion won, operating profit of 14.1 billion won, and net profit of -12.2 billion won in the first quarter of 2023. This was due to the weak performance caused by the impact of COVID-19 and exchange rate fluctuations. However, from the second quarter onwards, the performance is expected to improve due to the favorable conditions of hydrogen and power equipment businesses and the recovery of overseas markets.
- Possibility of stock price increase: Hyosung Heavy Industries stock is trading at 88,300 won per share as of June 2, 2023 market close, with a market capitalization of 761.8 billion won. The foreign ownership ratio is 10.00%, and the PER is 74.48 times. The stock price has risen by 11.29% in the last month. This reflects the expectations for performance improvement and hydrogen economy growth. The stock price may rise further depending on Hyosung Heavy Industries’ business expansion and results announcement.
Conclusion
Hyosung Heavy Industries stock is a leading company in the hydrogen economy and has a strong competitive edge in the power equipment market. It also secures new growth engines through venture investment. It has high potential for performance improvement and stock price increase, so it is a good stock to buy now.