Hyosung TNC is the world's number-one maker of spandex, the fiber that gives clothing its stretch, which it sells under the 'creora' brand; it also makes nylon and polyester yarns, producing and selling from local plants around the world. On April 24, 2026 it formalized its earnings recovery with preliminary first-quarter results and an investor briefing, and it is streamlining its business structure through a merger among subsidiaries while putting weight on improving profitability under a co-CEO system. What stands out is that, having passed the bottom of the 2025 downcycle, selling prices and margins are rising together, reviving strong earnings-recovery leverage for the world's top player. On the other hand, the debt ratio is high at 367% and results are sensitive to spandex prices, so quarterly figures can swing with seasonal off-peaks or raw-material price moves.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 366.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 1.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.2% higher than a year earlier.
- ROE is 0.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.3%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Hyosung 20.78% (corporate)
Controlling bloc incl. related parties 42.72%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- Hyosung TNC makes spandex (stretch fiber), the material that gives clothing its stretch.
- This spandex is sold under the brand 'creora' and holds the number-one share of the world market.
- Beyond spandex, the company also makes nylon and polyester yarns, supplying material for nearly every fabric product that needs stretch — jeans, underwear, diapers, sportswear, and more.
- With plants around the world in Korea, China, Vietnam, India, Turkey, and Brazil that produce and sell locally, its results are heavily driven by global demand for spandex and its selling price.
- The latest close was ₩272,000 and the market cap is ₩1.2 trillion.
- The price sits below its 20-day line (₩295,325) and below its 60-day line (₩394,425).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing the strength of gains and losses over the past 14 days on a 0-100 scale) is 36.1, a neutral level.
- The one-month change is -17.1%, the three-month change is -30.2%, and the price is -49.2% from its 52-week high.
- Relative strength versus the KOSPI is 48 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 52% of all stocks by strength.
- Over the past three months it lagged the index by 46.4%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- On last year's basis the P/E ratio (how many times one year's earnings the share price represents) looks very high at 108.85x.
- But that is inflated by the 'bottom earnings' of 2025, when net profit plunged to ₩10.8 billion.
- The P/B (how many times net assets) is 0.75x, so the stock trades below its book net assets.
- Profitability is still in the early stage of recovery, so the ROE (how much is earned on equity in a year) is low at 0.7%.
- On the balance sheet, the debt ratio (debt relative to equity) is high at 367%, so the interest burden must be watched alongside.
- That said, EV/EBIT (enterprise value divided by operating profit — a debt-inclusive counterpart to the P/E) is 8.6x, a level that is not excessive relative to operating profit even after accounting for debt.
- The dividend yield is a steady 3.6% (a dividend of ₩10,100 per share).
- Revenue held roughly flat between ₩7.5 trillion and ₩7.8 trillion from 2023 to 2025.
- Profit, however, swung widely with the spandex cycle.
- Net profit plunged from ₩134.5 billion in 2024 to ₩10.8 billion in 2025, the bottom of a downcycle in which oversupply from China depressed spandex prices.
- The trend turned in 2026: first-quarter net profit reached ₩50.9 billion, more than double the year-earlier figure.
- In a single quarter, it already comfortably exceeded last year's full-year net profit.
- This is because spandex inventories are shrinking and selling prices are rising, improving margins step by step.
- With no new spandex capacity additions in 2026, supply and demand are tight and this improving trend continues.
- So even though the P/E looks high on last year's earnings, on this year's recovered earnings the stock actually sits at a low multiple.
- On April 24, 2026 the company formalized its earnings recovery with preliminary first-quarter results and an investor briefing (IR).
- Around the same time it disclosed a decision to merge subsidiaries, streamlining its business structure.
- In June, routine filings continued, including changes in major-shareholder holdings and the corporate governance report.
- On the management side, it is reorganizing governance under a co-CEO system, putting weight on improving profitability.
- The strengths are clear.
- As the world's top spandex player, the scale of earnings recovery is large when the cycle turns.
- 2025 was the bottom of a downcycle, and into 2026 selling prices and margins are rising together.
- The high P/E on last year's numbers is due to bottom earnings; on this year's recovered earnings the stock is closer to an undervalued zone.
- With P/B also below 1x, the burden relative to net assets is not large.
- Two cautions stand out.
- First, the debt ratio is high at 367%, so the interest environment and cash flow must be watched alongside.
- Second, results are sensitive to spandex prices, so quarterly figures can swing with the seasonal off-peak in the second half or raw-material price moves.
- In short, the longer the spandex recovery continues, the more earnings leverage revives; conversely, if prices are pressed down again, earnings retreat quickly.
🔎 Valuation vs peers Undervalued
A peer set of companies in materials businesses such as spandex, industrial fibers, and fine chemicals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HS Hyosung Advanced Materials | 0.00x | 0.82x | -2.68% |
| Lotte Fine Chemical | 10.44x | 0.45x | 4.36% |
The P/E of 113x on last year's basis is a figure distorted by 'bottom earnings,' with 2025 net profit pressed down to ₩10.8 billion, so it is hard to call the stock expensive on this number alone. First-quarter 2026 net profit already comfortably exceeded last year's full-year figure, and with the spandex cycle in recovery, the multiple falls sharply on this year's recovered earnings. P/B is also low at 0.78x relative to net assets, and against peers Lotte Fine Chemical (P/B 0.48x) and HS Hyosung Advanced Materials (P/B 0.88x), there is no excessive premium to net assets. That said, the balance-sheet stability must be watched alongside given the high debt ratio, and because earnings have a cyclical sensitivity to spandex prices, the judgment is left with some margin.
Price history Close · MA20 · MA60
The latest close is ₩272,000 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩295,325) and below its 60-day moving average (₩394,425). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 36.1, a neutral level. The one-month change is -17.1%, the three-month change is -30.2%, and the position relative to the 52-week high is -49.2%. Relative strength versus the KOSPI is 48 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 48% of all stocks. Over the past three months it lagged the index by 46.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -46.44% / 6M -20.56% / 12M -57.65%
Key metrics vs sector median
Valuation
The P/E of 108.85x is above the sector median (14.79x). The P/B of 0.75x is below the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 0.7%, below the sector average (4.0%). The operating margin is 3.3%. The debt ratio is 366.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.0B | $5.2B | $5.1B | -1.04% ↓ slower |
| Operating profit | $141.4M | $179.4M | $166.7M | -7.10% ↓ slower |
| Net profit | $61.8M | $89.2M | $7.2M | -91.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.7B | $5.9B | $5.0B | $5.2B | $5.1B |
| Operating profit | $943.6M | $81.9M | $141.4M | $179.4M | $166.7M |
| Net profit | $510.6M | $7.7M | $61.8M | $89.2M | $7.2M |
| Revenue CAGR | 4-yr avg -2.73% | ||||
Revenue fell 1.0% year over year (2023 ₩7.5 trillion → 2024 ₩7.8 trillion → 2025 ₩7.7 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 7.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.7%. The two-year revenue CAGR is 1.1%. In the most recent quarter (Q1 2026), revenue was 7.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 3.7%, is on the high side.
Points to watch
- Debt far exceeds equity (debt ratio 366.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.1%).
- Revenue fell 1.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-24EarningsDisclosed preliminary Q1 2026 consolidated results. Net profit rose sharply year on year, confirming the spandex recovery in the results.Short term: a signal of an earnings turnaround. Medium term: the starting point for whether spandex margin improvement is sustained. Source
- 2026-04-24IRHeld an investor briefing (IR). Explained the first-quarter results and the direction of the spandex business to the market.Medium term: the company's official channel for explaining the recovery phase. Source
- 2026-04-15FilingDisclosed a decision to merge subsidiaries. In the nature of streamlining the business structure within the group.Medium term: simplification and greater efficiency of the consolidated structure. Source
- 2026-05-14FilingFiled the Q1 2026 quarterly report. Officially finalized cumulative results and financial position.Short term: finalization of the preliminary results and disclosure of detailed financials. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-27Disclosure
- 2026-04-24Disclosure
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-24Disclosure
- 2026-04-15Merger decision
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
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