Las acciones de Hyosung Chemical se disparan por pronóstico de ganancias del segundo trimestre que supera los 100 mil millones de wones.

Hyosung Chemical stocks surged for four consecutive trading days through July 8, driven by forecasts that the company's Q2 operating profit will exceed 100 billion won. IBK Securities issued the earnings projection on July 7, triggering a 29.84% single-day gain that closed at 67,000 won. The stock rally marks a dramatic reversal for the petrochemical firm, which resumed trading on May 15 after a 1 year 3 month suspension due to full capital erosion totaling negative 68 billion won at the end of 2024. Analysts attribute the turnaround to stabilizing operations at the company's Vietnam polypropylene and propane dehydrogenation facilities, which had generated four consecutive years of operating losses from 2022 through 2025. The South Korean petrochemical sector has faced prolonged headwinds from Chinese oversupply and weak industry conditions, making Hyosung Chemical's recovery a closely watched indicator of broader market stabilization.

Hyosung Chemical Stocks Rise Four Consecutive Days Through July 8

As of 10:22 AM on July 8, Hyosung Chemical stocks traded at 67,500 won, up 500 won (0.75%) from the previous close. The stock had spiked 22.39% to 82,000 won immediately after market opening before entering a consolidation phase. The four-day rally began on July 3 when shares closed at 46,600 won. On July 6, the stock gained 10.73%, followed by the July 7 upper limit gain of 29.84% to 67,000 won.

IBK Securities Forecasts Q2 Operating Profit Exceeding 100 Billion Won

IBK Securities released a report on July 7 projecting Hyosung Chemical's Q2 operating profit will surpass 100 billion won. This represents a dramatic improvement from Q1's operating profit of 300 million won. Lee Dong-wook, IBK Securities researcher, stated the forecast reflects "not only inventory valuation gains and one-time exchange rate effects, but also polypropylene (PP) sales price increases, propane cost lagging effects, Vietnam facility operation stabilization, and early periodic maintenance effects from the end of last year—all combining to produce operating leverage."

The analyst noted that Q1's consolidated EBITDA had already recovered to 51.2 billion won, compared to operating losses of 52.1 billion won in Q1 of the previous year and 73.3 billion won in Q4. Lee characterized Q1 as "essentially confirming a return to the break-even point."

Vietnam Operations Show Stabilization After Four-Year Loss Streak

Hyosung Chemical's Vietnam polypropylene production and propane dehydrogenation (DH) facilities had accumulated losses due to Chinese oversupply and deteriorating petrochemical market conditions. The company recorded operating losses for four consecutive years from 2022 through the previous year. By the end of 2024, consolidated total capital had fallen to negative 68 billion won, triggering full capital erosion and trading suspension.

Lee stated that the Vietnam PP and DH facilities, previously the company's largest burden, have become core drivers of earnings recovery. He noted that "starting in March, industry conditions improved and the deficit narrowed significantly, with facility operation stabilization and spread strength continuing."

Company Raised 1.64 Trillion Won Through Asset Sales and Capital Injection

To address the capital crisis, Hyosung Chemical sold its specialty gas division and Onsan tank terminal, while pursuing the sale of Vietnam subsidiary stakes and attracting external capital. The company reportedly raised a total of 1.6414 trillion won through these management improvement measures. Trading resumed on May 15 after approximately 1 year 3 months of suspension. On the first day of resumed trading, the stock price dropped 29%.

Lee explained that "if the 200 billion won perpetual bond is reflected at the end of June, an accounting capital expansion effect will occur." He added that "if Q2 operating profit returns to the black alongside this, capital will increase while net debt burden is alleviated," projecting that "starting from the end of Q2, there is a high possibility of this being the first quarter where profit recovery and capital expansion are reflected simultaneously in financial structure improvement."

Analyst Identifies Investment Opportunities in Shale Gas LPG and Polyketone

IBK Securities highlighted additional investment points beyond Vietnam operations recovery. Lee cited "enhanced raw material competitiveness from expanded procurement of North American shale gas-based liquefied petroleum gas (LPG), the possibility of securing low-cost propylene through the Shaheen project, and expanded application of polyketone in electric vehicles and humanoid sectors" as key factors.

FAQ

What caused Hyosung Chemical stocks to surge on July 7 and July 8?

IBK Securities released a report on July 7 forecasting that Hyosung Chemical's Q2 operating profit would exceed 100 billion won, compared to Q1's operating profit of only 300 million won. This dramatic earnings improvement projection triggered a 29.84% gain on July 7 to 67,000 won, followed by continued gains on July 8.

Why did Hyosung Chemical face a delisting crisis?

Hyosung Chemical's consolidated total capital fell to negative 68 billion won by the end of 2024 due to four consecutive years of operating losses from 2022 through the previous year. The losses stemmed primarily from underperforming Vietnam polypropylene and propane dehydrogenation facilities amid Chinese oversupply and weak petrochemical market conditions. The full capital erosion triggered trading suspension, which lasted approximately 1 year 3 months until trading resumed on May 15.

How did Hyosung Chemical address its financial crisis?

The company implemented management improvement measures that raised a total of 1.6414 trillion won. These included selling its specialty gas division and Onsan tank terminal, pursuing the sale of Vietnam subsidiary stakes, and attracting external capital. Additionally, a 200 billion won perpetual bond expected by the end of June will provide further accounting capital expansion effects.