Hyosung stock: Q3 operating profit rises 43.8% as units improve

Hyosung Corporation's operating profit rose 43.8 percent year over year in the third quarter, as stronger results at key subsidiaries lifted the South Korean holding company's performance. Financial News reported the results on Friday, October 30, citing the company's quarterly figures.

Subsidiaries drive quarterly improvement

Consolidated revenue reached KRW 699.3 billion in the July-to-September period, up 14.2 percent from a year earlier. Operating profit increased to KRW 175.3 billion, while the operating margin widened to 25.1 percent from 19.9 percent.

Equity-method earnings rose 33.9 percent year over year to KRW 80.6 billion, reflecting better contributions from subsidiaries including Hyosung Heavy Industries. Hyosung TNS reported revenue of KRW 398.7 billion and operating profit of KRW 70.1 billion, increases of 6.0 percent and 28.2 percent, respectively.

Power equipment remains a key driver

Hyosung Heavy Industries generated third-quarter revenue of KRW 1.7406 trillion and operating profit of KRW 243.5 billion. New orders climbed 122 percent year over year to KRW 3.2331 trillion, lifting its order backlog 71 percent to a record KRW 18.9 trillion.

Demand was particularly strong for ultra-high-voltage transformers in the United States, where the unit signed contracts worth about KRW 380 billion with two major technology companies. Logistics disruptions linked to the Middle East and U.S. storms delayed some revenue recognition, while higher construction costs weighed on profitability in that division.

Chemicals remain under pressure

Hyosung TNC's revenue increased 6.1 percent to KRW 2.1331 trillion and operating profit nearly doubled to KRW 110.2 billion. Hyosung Chemical, by contrast, posted an operating loss of KRW 19.5 billion as higher logistics costs pressured polypropylene and propane dehydrogenation operations, although the loss narrowed from a year earlier.

Hyosung is a South Korean holding company whose portfolio includes industrial equipment, chemicals, textile materials, energy-related businesses and services through subsidiaries such as Hyosung Heavy Industries, Hyosung Chemical and Hyosung TNC. Its product portfolio also includes CREORA and regen materials, according to the company's investor relations overview. The group serves domestic and international markets, with recent power-equipment growth centered on the United States.

South Korean equities provide the broader market backdrop for Hyosung stock. See South Korean equity market reports.

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