Hyosung Group, which marks its fifth year since Chairman Cho Hyun-joon took the lead in management, has surpassed 10 trillion won ($9 billion) in market capitalization. In particular, three material affiliates, which were directly hit by last year's sales due to the Covid-19 incident, posted all-time sales this time, driving their good performance.
Analysts say Chairman Cho's New Year's address this year is shining. He stressed in the statement, "Hyosung should be a premium brand that customers trust and recognize."
Chairman Cho converted Hyosung Group into a holding company system in 2018, the year after his inauguration. Through this, Hyosung Corp. has become a structure with Hyosung T&C, Hyosung Advanced Materials, Hyosung Chemical, and Hyosung Heavy Industries.
Hyosung Corp., the holding company of Hyosung Group, posted operating profit of 100.6 billion won (based on consolidation) in the first quarter of this year and posted its biggest quarterly performance.
Compared to the same period last year, its operating profit increased about 18 times (1788 percent). This is the result of material affiliates Hyosung T&C, Hyosung Advanced Materials, and Hyosung Chemical recording "surprise performance" that exceeded market expectations in the first quarter.
Hyosung T&C's first-quarter operating profits more than doubled (214.4%) from the same period last year to 246.7 billion won.
It is the biggest performance since its establishment. Operating profit of Hyosung Advanced Materials also nearly doubled (192.92%) year-on-year to 83.4 billion won, while Hyosung Chemical also nearly quadrupled (392.5%) from the previous year to 61.1 billion won.
Hyosung T&C, which has the largest market share of Spandex in the world, makes fiber yarn by receiving high purity terephthalic acid (TPA) through Hyosung Chemical. Hyosung Advanced Materials is also supplied with yarn from Hyosung T&C to produce tire cords, which are tire reinforcement materials.
Hyosung T&C is supplying quantities by operating 100% of its factories in Gumi, North Gyeongsang Province, as well as overseas plants in China, Vietnam, Turkey, and Brazil.
Tire cord prices also surged. Hyosung Advanced Materials ranks first in the global tire cord market with a 45% market share. Carbon fiber, a new business, has been making surplus since late last year as global orders from the U.S. and India have increased.
Chairman Cho Hyun-joon emphasizes that Hyosung should be the most reliable brand while fulfilling its role and responsibility in society. As a result, five Hyosung companies received grade A or higher in the Environmental, Social and Governance (ESG) evaluation last year.
Chairman Cho said, "IT technologies are converging with each other to create synergy and the paradigm of the industry is changing from the basics," adding, "The arrival of the Singularity era, which he emphasizes, is now an inevitable reality."
He added, "The era of PAX, led by superpowers, is passing and AI is creating a world order. The mankind will eventually overcome and overcome the unprecedented COVID-19 pandemic crisis."
