HS Hwasung has seen its operating profit for the second quarter increase by over 300% compared to the same period last year, leading to a surge of nearly 19% in its stock price.
According to the Korea Exchange, as of 10:07 a.m. on July 31, HS Hwasung's shares were trading at 47,950 won, up 7,900 won (19.43%) from the previous trading day.
On the previous day, HS Hwasung announced that its consolidated revenue for the second quarter reached 430.9 billion won, a 24.9% increase from the same period last year. Operating profit rose to 35.8 billion won, up 301.7%, while net profit increased to 27.1 billion won, a 360.6% rise.
Market analysts attribute the strong performance to improvements in its key subsidiary, HS Hwasung Advanced Materials. The subsidiary reported second-quarter revenue of 952.7 billion won, a 13.0% increase year-on-year, with operating profit rising to 77.6 billion won, up 32.2%.
Notably, the tire reinforcement materials segment recorded its highest revenue since 2022, reaching 549.3 billion won, driven by seasonal demand and price increases for raw materials. The operating profit for this segment was reported at 59.4 billion won.
The strong second-quarter results have improved investor sentiment. Initially, the stock price surged to the daily limit but later retraced some gains while maintaining a robust 19% increase.
* This article has been translated by AI.
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