Hyosung(004800): Stable financial structure, but slow earnings improvement
- Company update
- Reiterating BUY and TP of KRW24,000
> Although Hyosung’s 2Q06 results were weaker than 2Q05, we are delighted to see earnings continued to improve.
> 2Q06 OP grew 90.8% q/q but fell 12.6% y/y.
> 3Q06 OP is forecast to grow 11.9% y/y to KRW40.2bn. However, on a q/q basis, it should fall 7.1%.
> We view that the company’s turnaround story is intact, though recovery is slower than we have expected.
> Working capital is getting slimmer and borrowings are decreasing. |
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