[Featured Stock] Hyosung TNC Rises Over 4% on China Reopening Optimism

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jaehee] Hyosung TNC is showing strength in early trading amid expectations of China's reopening, which accounts for 60% of global spandex demand.

According to the Korea Exchange on the 13th, as of 10:12 AM, Hyosung TNC was trading at 357,000 KRW, up 4.23% from the previous trading day on the KOSPI market.

On the same day, Shinhan Investment Corp. raised the target price for Hyosung TNC from 360,000 KRW to 430,000 KRW, citing anticipated benefits from China's reopening.

Researcher Lee Jinmyung of Shinhan Investment Corp. analyzed, "The global spandex market experienced a downturn after the record boom in 2021 due to China's zero-COVID policy and large-scale capacity expansions. However, since the third quarter low this year, expectations for China's reopening have rapidly spread, raising hopes for an industry recovery in 2023."

He added, "Hyosung TNC, as a vertically integrated company, is not expected to adjust its operating rate and can maintain higher prices compared to competitors. Spandex prices are also rising by 10% month-on-month due to improved demand and sales recovery, indicating that Hyosung TNC's stock price and earnings are likely to trend upward."

This content was produced with the assistance of AI translation services.