Korea Stock Market Insights

Tag: Spandex

  • HS HyoSung Advanced Materials: Major Shareholder Increases Stake – Opportunity or Risk?



    HS HyoSung Advanced Materials: Major Shareholder Increases Stake - Opportunity or Risk? 대표 차트 이미지






    What Happened?

    HS HyoSung’s largest shareholder, HS Holdings, increased its stake in HS HyoSung Advanced Materials from 48.35% to 49.35% through open market purchases between August 27th and September 2nd, 2025. This increase was attributed to changes in shareholdings of related parties and amendments to a collateral agreement related to the shares.

    Why Does This Matter?

    An increase in stake by a major shareholder is typically viewed as a positive sign of management stability and strengthened corporate governance. It can enhance the execution of management strategies and raise expectations for shareholder value creation. This move can also be interpreted as management’s positive outlook on the company’s future.

    Should I Invest?

    Despite the positive implications, there are cautionary points to consider before making an investment decision. HS HyoSung Advanced Materials has recently experienced a decline in operating profit due to rising raw material prices and weakened profitability in some business segments, leading to a net loss. Furthermore, the details of the amended collateral agreement have not been disclosed, which could impact future stock price volatility.

    Investor Action Plan

    • Proceed with Caution: While the stake increase is a positive development, the recent decline in performance and external uncertainties must be considered.
    • Monitor Closely: Keep track of the details regarding the collateral agreement changes, raw material price trends, and performance of new growth engines like carbon fiber.
    • Balanced Perspective: Maintain a balanced investment perspective by considering both the positive and negative factors.


    Frequently Asked Questions

    What are the main businesses of HS HyoSung Advanced Materials?

    HS HyoSung Advanced Materials’ core business is the industrial materials segment, which produces tire cords, steel cords, carbon fiber, and other products. They also operate a textile segment, known for its spandex brand ‘Creora,’ and other businesses like nylon film production.

    What are the key risks to consider when investing in HS HyoSung Advanced Materials?

    Key risks include recent poor performance, raw material price volatility, global economic slowdown, and ongoing patent litigation.

    How will the increased stake by the major shareholder affect the stock price?

    While generally perceived as a positive signal, it’s difficult to predict stock price appreciation given current performance challenges and external uncertainties.









    HS HyoSung Advanced Materials: Major Shareholder Increases Stake - Opportunity or Risk? 관련 이미지




  • Taekwang Industrial: Impact of Taekwang HwaSum’s Spandex Business Suspension

    1. What Happened? Taekwang HwaSum Suspends Spandex Operations

    Taekwang HwaSum, a subsidiary of Taekwang Industrial, will suspend its spandex business operations starting October 31, 2025. The scale of the suspension is significant, amounting to KRW 94.3 billion, which represents 4.45% of Taekwang Industrial’s total sales.

    2. Why the Suspension?

    The specific reason for the suspension has not been disclosed in the announcement. We will update this information as further details become available.

    3. How Will This Impact Taekwang Industrial?

    3.1 Financial Impact

    • Sales Decrease: Q4 sales are expected to decrease by at least KRW 94.3 billion.
    • Operating Profit Decrease: Decreased sales, coupled with fixed cost burdens and potential discounts on inventory sales, will inevitably lead to a decline in operating profit.
    • Cash Flow: While cash inflow from inventory sales is expected, the suspension of production lines and recovery costs may negatively impact cash flow.

    3.2 Non-Financial Impact

    • Damage to Corporate Image: The suspension raises concerns about the company’s stability and may amplify existing concerns regarding corporate governance, especially considering ongoing conflicts with minority shareholders.
    • Weakened Competitiveness: This provides competitors an opportunity to increase market share, and Taekwang HwaSum may face challenges in recovering its competitiveness after the suspension.
    • Negative Investor Sentiment: Stock price decline and potential withdrawal of foreign investors are likely.

    4. What About External Factors?

    External factors such as exchange rates, raw material prices, interest rates, and the global economic climate can also influence Taekwang Industrial. The USD/KRW exchange rate and crude oil price fluctuations, in particular, warrant close attention.

    5. What Should Investors Do?

    Investors should carefully analyze the short-term and long-term impacts of the suspension and continuously monitor future announcements and news to adjust their investment strategies. It is crucial to pay close attention to the company’s response strategy and its efforts to resolve conflicts with minority shareholders.

    Why is Taekwang HwaSum suspending its spandex business?

    The exact reason has not been disclosed yet. We will update this information as it becomes available through official announcements.

    How will the suspension affect Taekwang Industrial’s stock price?

    A short-term decline in stock price is expected. However, the long-term impact will depend on the company’s response strategy and external factors.

    How should investors react to this news?

    It’s advisable to continuously monitor relevant information, consult with financial professionals, and make informed investment decisions.