Hyosung(004800): High value, right direction
- 3Q06 comment
- TP revised up to KRW34,000 from KRW24,000
- Maintain BUY
> 3Q06 results came in below our estimate, but equity-method account turned black following turnaround of the Chinese subsidiaries.
> Equity-method account should continue to be in positive territory in 4Q06.
> Gradual improvement in operating results is expected.
> Business condition in the spandex industry started improving from 2006, and Hyosung’s textile division should post positive earnings from 2007 as a result.
> Financial structure will improve through disposal of non-operating assets. |
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