Hyosung Chemical's stock price reached 69,400 won on May 24, marking a 78% surge from its pre-suspension close of 38,900 won in February 2024. The chemical manufacturer is projected to post over 100 billion won in Q2 2025 operating profit, reversing a four-year loss streak that began in 2022. The turnaround stems from Vietnam facility stabilization, cost reductions, and rising polypropylene prices driven by Strait of Hormuz shipping disruptions. Trading resumed May 15 following capital restructuring that raised over 1.6 trillion won through asset sales and perpetual bond issuance. South Korea's petrochemical sector faces ongoing oversupply challenges, but Hyosung Chemical's operational improvements have outpaced industry-wide recovery trends.
Hyosung Chemical Stock Surges 78% Since Trading Resumption
Hyosung Chemical's stock closed at 69,400 won on May 24, according to Yonhap Infomax market data. The price represents a 78% increase from the 38,900 won close recorded in February 2024 before trading suspension due to capital erosion. Market capitalization expanded proportionally as outstanding share count remained unchanged.
Trading resumed May 15 after regulatory approval. The stock exhibited extreme volatility post-resumption, alternating between daily price limits, before stabilizing in the 50,000–60,000 won range in recent sessions. Hyosung Chemical's recovery outpaced major chemical sector peers including Lotte Chemical and LG Chem during the suspension period, indicating company-specific factors drove the rally beyond industry-wide trends.
Q2 2025 Operating Profit Forecast Exceeds 100 Billion Won
Hyosung Chemical posted 300 million won in Q1 2025 operating profit, ending 16 consecutive quarters of losses dating to 2022. The company recorded annual operating deficits from 2022 through 2024 due to weak petrochemical market conditions and operational issues at its Vietnam subsidiary.
IBK Securities analyst Lee Dong-wook projects Q2 2025 operating profit will surpass 100 billion won, representing a 100 billion won sequential improvement. The forecast incorporates multiple simultaneous factors: polypropylene price increases triggered by Strait of Hormuz shipping constraints, lagging effects of propane raw material cost recognition, Vietnam facility utilization gains, and benefits from accelerated maintenance completed in late 2024.
Q1 revenue matched prior-year levels while profitability improved through Vietnam plant stabilization and cost containment measures. The company has not disclosed official Q2 guidance.
Vietnam Facility Stabilization and Cost Reductions Drive Turnaround
Hyosung Chemical advanced scheduled maintenance at its Vietnam facility to late 2024, enabling higher utilization rates and sales volumes in 2025. The operational adjustment contributed to Q1's return to profitability alongside cost reduction initiatives.
The company expanded procurement of shale gas-based liquefied petroleum gas from North America, enhancing raw material cost competitiveness amid prolonged Middle East conflicts. Polypropylene selling prices rose due to Strait of Hormuz transit disruptions affecting regional supply chains. Propane feedstock costs reflect in production expenses with time delays, creating favorable margin conditions through lagging effects.
S-Oil's Shaheen project represents a potential long-term catalyst for securing low-cost propylene supplies. The project enters trial operations in H2 2025 with full-scale production targeted for 2026. Successful commissioning would provide Hyosung Chemical access to competitively priced regional feedstock beyond existing suppliers.
Debt Ratios Remain Elevated Despite Capital Restructuring
Hyosung Chemical's net debt ratio stood at 240% at Q1 2025 end, with debt-to-equity exceeding 300%. The company raised over 1.6 trillion won through asset disposals, perpetual bond issuance, and external capital during the trading suspension period as part of its management improvement plan.
Financial support for Vietnam subsidiary Hyosung Vina Chemical continues. The company approved an 89.3 billion won debt guarantee for Hyosung Vina Chemical's local bank obligations on May 16. Total outstanding debt guarantees reached 903.4 billion won.
China-driven polypropylene oversupply persists industry-wide, creating uncertainty around the sustainability of recent margin improvements. Hyosung Chemical's stock traded at 66,900 won as of 9:45 a.m. on May 27, down 3.60% from the prior session.
FAQ
What caused Hyosung Chemical's stock price to rise 78% after trading resumption?
The stock increased from 38,900 won (February 2024 pre-suspension close) to 69,400 won (May 24 close) due to Q2 2025 operating profit forecasts exceeding 100 billion won, Vietnam facility stabilization, and polypropylene price increases from Strait of Hormuz disruptions. Trading resumed May 15 following capital restructuring.
How did Hyosung Chemical achieve profitability in Q1 2025 after 16 consecutive loss-making quarters?
The company posted 300 million won Q1 operating profit through Vietnam plant utilization improvements and cost reductions. Accelerated maintenance completed in late 2024 enabled higher 2025 production volumes, while expanded North American LPG procurement reduced raw material costs.
