 |
View of Daishin Securities office building. (Photo=Daishin Securities) |
[Alpha Biz= Reporter Kim Sangjin] Daishin Securities projected that Hyosung's dividend per share (DPS) for this year will likely exceed 3,000 KRW.
The firm adjusted its target price for Hyosung from the previous 79,000 KRW to 70,000 KRW but maintained a 'Buy' rating.
Daishin Securities explained that the changes in the company’s valuation are due to the spin-off of HS Hyosung, the separation of various subsidiaries including Hyosung Advanced Materials, Hyosung Information Systems, Hyosung Toyota, and Hyosung Holdings USA, which necessitate a revision in the sum-of-the-parts (SOTP) valuation.
According to Daishin Securities, the value of listed affiliates, including Hyosung Heavy Industries, Chemicals, TNC, and ITX, is approximately 1.3 trillion KRW. The value of unlisted affiliates is about 850 billion KRW, the site value of the Anyang plant is 470 billion KRW, royalty income is valued at 600 billion KRW, and net cash is 49 billion KRW, bringing the total corporate value to approximately 3.3 trillion KRW. The net asset value per share is 199,130 KRW, and the target price was set by applying a 65% discount.
The firm also noted that due to the poor performance of Hyosung's chemical affiliates, it is unlikely that the dividend will see a significant increase this year. However, Hyosung TNC, an unlisted subsidiary, has shown improved performance since the second quarter, and the company held about 50 billion KRW in cash at the end of the first half of the year. Therefore, Daishin Securities estimates the DPS to be around 3,000 KRW or higher for this year.
Daishin Securities added that the number of Hyosung's issued shares has decreased by about 4.33 million to 16.7 million shares following the spin-off. If the DPS is 3,000 KRW, the total dividend payout is expected to be 50.2 billion KRW, and if it is 4,000 KRW, the total payout is anticipated to be 67 billion KRW.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
