[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 8th that it is maintaining its “Buy” investment rating for HYOSUNG TNC(298020)but lowering its target price from 540,000 won to 430,000 won.

Choi Young-kwang, an analyst at NH INVESTMENT & SECURITIES, stated, “There will be no new spandex capacity additions in 2026, and capacity is expected to reach 125,000 metric tons in 2027.” He added, “Taking into account the increase in demand, the capacity utilization rate is projected to rise from 77.5% in 2026 to 78.6% in 2027, and the improvement in the supply-demand balance is expected to continue.”
He noted, “Recent spandex prices have been ranging sideways, but this is due to the seasonal off-peak period rather than a deterioration in industry fundamentals,” and predicted, “Given that inventories in the Chonbang market are at historically low levels, the impact of the off-peak season in the second half of the year will be weaker than in previous years. A strong rebound in purchasing demand is expected once fabric manufacturers’ operating rates recover.”
Regarding the decision to lower the target price, “This is due to applying a 10% discount to the target multiple, taking into account the recent concentration of stock market supply and demand on semiconductors and the deepening neglect of the chemical sector,” he explained, emphasizing, “Given the robust industry fundamentals, we believe HYOSUNG TNC’s current stock price—which stands at just 0.7 times PBR for 2026—is excessively undervalued.”
Analyst Choi added, “Although there has been a sharp stock price correction recently, the stock price is expected to trend upward again, reflecting the increased valuation appeal, a favorable operating environment, and HYOSUNG TNC’s differentiated trend of earnings improvement within the sector.”