According to the company, its fabrics business has been buoyed by expanding overseas sales of spandex coupled with successful cost-cutting efforts. The company added that its fabrics business is expected to continue seeing improvements in the second half of the year.

As for its heavy industries division, Hyosung said that its efforts in selecting high-profit contracts for high voltage transformers and circuit breakers appear to be showing results. Hyosung also said that the division has shown improved quality control and cost-cutting measures, enabling it to gain an edge in the market.

“The profitability of spandex (business) is likely to remain strong in the second half of the year, while the performance of the company’s heavy industries’ business will see more improvements next year,” a local securities analyst said.

The analyst also said that Hyosung’s chemicals business will bring positive effects to the company’s figures from the final quarter of this year.

Fueled by the company’s higher than expected second quarter figures, local securities firms raised the target price for Hyosung shares.

Samsung Securities raised the target from 180,000 won from the current 150,000 won, while IBK Securities raised the target by 100,000 won to 200,000 won.

By Suk Gee-hyun (monicasuk@heraldcorp.com)