Hyosung TNC Overview
Hyosung TNC is the world's largest spandex producer, with about 30% of global supply. It sells under the creora brand from plants in China, Vietnam, India, Türkiye, Brazil and Korea. Alongside spandex it makes nylon and polyester filament and runs one of Korea's oldest general trading businesses, which handles steel and chemicals. Since February 2025 it has also owned Hyosung Neochem. Neochem is the world's second-largest producer of nitrogen trifluoride (NF3), a gas used to clean chip and display fabrication chambers, and it sells to Samsung Electronics, SK hynix and display makers. Neochem is the company's direct link to the semiconductor fabrication supply chain. Earnings depend mostly on the spread between spandex prices and raw-material costs. That spread bottomed in 2022–2025, when Chinese capacity was in oversupply, and widened sharply in 2026. The company's strategic agenda has three parts: grow specialty gases, build bio-based materials (a USD 1bn bio-BDO and bio-spandex complex in Vietnam), and reduce debt after the KRW 920bn Neochem acquisition roughly doubled net borrowings.
What the company does
Hyosung TNC reports two segments: Textile and Trade & Others.
Textile: makes spandex (elastane), nylon 6 filament, polyester filament, and the spandex polymer intermediate PTMG (polytetramethylene ether glycol). Revenue is product sales to mills that knit, weave and dye fabric for apparel brands and for hygiene products such as diapers. Spandex supplies nearly all of the segment's profit. Nylon and polyester have swung between losses and break-even for most of the past four years.
Trade & Others: includes the steel and chemical trading business inherited from Hyosung Mulsan, a tire-cord yarn operation in Dong Nai, Vietnam (Dong Nai Techyarn), and from February 2025 the specialty-gas subsidiary Hyosung Neochem. Neochem makes NF3, fluorine/nitrogen mixtures, chlorine, deuterium (D2), C4F7N and hydrogen chloride.
Revenue model
Almost all revenue comes from selling physical products: fibre, chemical intermediates, specialty gases and traded steel and chemicals. The company has no subscription or licensing income. Trading earns low margins on high volumes and has made up around 60% of revenue but well under a third of operating profit. Textile is the smaller segment by revenue but generates most of the profit. Neochem sells gases and, increasingly, purchased gases to semiconductor and display fabs under supply contracts.
Value-chain position
In spandex the company is unusually integrated. It makes PTMG in-house in China and Vietnam, and from 2026 makes bio-based BDO (1,4-butanediol, the PTMG feedstock) in Vietnam. Its Chinese plants run on coal-derived BDO. This insulated it from the oil-price spike that followed Middle East supply disruption in 2026, while the same spike raised prices of oil-based polyester and nylon and made spandex relatively more attractive to fabric makers. Downstream, the company sells to fabric mills but markets directly to brands such as Lululemon, Nike and H&M so that they specify creora in their garments.
Customers and end markets
| End market | Products | Customer type |
|---|---|---|
| Activewear, athleisure, swimwear, denim, intimates, hosiery | creora spandex, regen recycled fibres, regen BIO bio-based spandex, nylon and polyester filament | Fabric mills; brand programmes |
| Hygiene (diapers) | Spandex for hygiene applications | Personal-care converters |
| Semiconductor and display fabrication | NF3 and other specialty gases | Memory and logic chipmakers; display panel makers |
| Industrial and automotive | Tire-cord yarn (Dong Nai Techyarn); bio-BDO for TPU, PBAT resin and shoe soles (planned) | Tire makers; plastics converters |
| Steel and chemicals distribution | Traded steel products and chemicals | Industrial buyers in Europe, Asia and the Middle East |
Activewear, athleisure, swimwear, denim, intimates, hosiery: Products: creora spandex, regen recycled fibres, regen BIO bio-based spandex, nylon and polyester filament; Customer type: Fabric mills; brand programmes
Hygiene (diapers): Products: Spandex for hygiene applications; Customer type: Personal-care converters
Semiconductor and display fabrication: Products: NF3 and other specialty gases; Customer type: Memory and logic chipmakers; display panel makers
Industrial and automotive: Products: Tire-cord yarn (Dong Nai Techyarn); bio-BDO for TPU, PBAT resin and shoe soles (planned); Customer type: Tire makers; plastics converters
Steel and chemicals distribution: Products: Traded steel products and chemicals; Customer type: Industrial buyers in Europe, Asia and the Middle East
Company description and independent view
The company describes itself as a global textile and trading company that has added specialty gases to become a high-value-added materials business. In plainer terms, it is a cyclical commodity-fibre producer with a dominant cost position in spandex, a large low-margin trading arm, and a new, leveraged bet on semiconductor gases. The textile cycle matters far more than anything else to group profit. In 2021, at the peak of the spandex cycle, operating profit was KRW 1.42tn. In 2022 it was KRW 124bn. That swing exceeds any plausible contribution from the gas business.
Strategy
Stated strategy: "Vision 2030" value-up plan
The company published a corporate value-up plan in April 2025 under the Korea Exchange's Value-Up programme and reported on progress on 19 March 2026. Its main themes:
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Spandex as the cash engine. Use creora's market leadership to generate stable cash, apply a China / ex-China "two-track" sales strategy, and run "pull-through" marketing to brands so that they specify creora.
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Profitable growth rather than volume. Targets for 2030 are revenue of KRW 10tn, EBITDA of KRW 1tn and an EBITDA margin of 10% plus. The company frames these as putting profitability and stability ahead of size.
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Specialty gases as the high-margin growth engine. Widen the portfolio from 6 to 15 products and raise the share of gases other than NF3 from 26% to 54% of gas sales. The target for those other gases is EBITDA above KRW 100bn by 2030. At the time of the acquisition, the company said it aimed to cut NF3's share of gas sales from about 80% to about 50% by 2029.
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Fixing nylon and polyester. Move equipment to Dong Nai, emphasise differentiated products, and return to break-even and then profit.
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Shareholder returns. Pay at least 20% of consolidated net income as dividends; consider setting the dividend record date after the dividend is declared; widen C-level IR, overseas non-deal roadshows and English-language disclosure.
Progress reported for 2025
EBITDA was KRW 559.1bn, a margin of about 7% (about one point above the three-year average). Revenue was KRW 7.7tn, about KRW 0.3tn below the three-year average. Spandex pull-through volumes grew, the gas line-up widened and the dividend policy was applied. The 2025 dividend of KRW 43.3bn was about four times attributable net income.
Initiatives in the last 24 months
| Initiative | Timing | Description and targets |
|---|---|---|
| Hyosung Neochem acquisition and launch | Dec 2024 – Feb 2025 | KRW 920bn purchase; 11,500 t/yr NF3, second globally; new gases commercialised from late 2025 |
| Vietnamese bio-BDO and bio-spandex integration | 2024 – 2026 | USD 1bn programme; 50,000 t/yr bio-BDO in commercial operation in 2026, expandable to 200,000 t/yr (long-term target 2040); integrated chain: sugarcane → bio-BDO → PTMG (Dong Nai) → regen BIO spandex (Dong Nai) |
| Bio-materials platform | 2026 onwards | Plans to sell bio-BDO into automotive TPU, biodegradable PBAT resin and shoe soles, making Vietnam a base for plastics and fine chemicals |
| Ningxia spandex expansion | 2,025 | About 54,000 t of new low-cost capacity; per the company, it makes Hyosung's capacity the world's largest |
| Nylon/polyester restructuring | 2024 – 2025 | Equipment moved to Dong Nai; more than KRW 40bn of losses in 2024; profitable in Q2 2026 |
| Circular fibre (regen T2T) | 2025 – 2026 | Loop Industries partnership; pilot line in Gumi |
| Co-CEO structure | 2,026 | Separate accountable chiefs for Textile and Trading |
| Sustainability targets | Ongoing | 2050 net zero roadmap. The 2030 goal of cutting domestic emissions 14.5% from 2018 was met early (40.5% lower by 2025). A science-based (SBTi) target is planned for the second half of 2026. Sustainable products are to reach 16% of revenue by 2030 (7.0% in 2025). |
Hyosung Neochem acquisition and launch: Timing: Dec 2024 – Feb 2025; Description and targets: KRW 920bn purchase; 11,500 t/yr NF3, second globally; new gases commercialised from late 2025
Vietnamese bio-BDO and bio-spandex integration: Timing: 2024 – 2026; Description and targets: USD 1bn programme; 50,000 t/yr bio-BDO in commercial operation in 2026, expandable to 200,000 t/yr (long-term target 2040); integrated chain: sugarcane → bio-BDO → PTMG (Dong Nai) → regen BIO spandex (Dong Nai)
Bio-materials platform: Timing: 2026 onwards; Description and targets: Plans to sell bio-BDO into automotive TPU, biodegradable PBAT resin and shoe soles, making Vietnam a base for plastics and fine chemicals
Ningxia spandex expansion: Timing: 2025; Description and targets: About 54,000 t of new low-cost capacity; per the company, it makes Hyosung's capacity the world's largest
Nylon/polyester restructuring: Timing: 2024 – 2025; Description and targets: Equipment moved to Dong Nai; more than KRW 40bn of losses in 2024; profitable in Q2 2026
Circular fibre (regen T2T): Timing: 2025 – 2026; Description and targets: Loop Industries partnership; pilot line in Gumi
Co-CEO structure: Timing: 2026; Description and targets: Separate accountable chiefs for Textile and Trading
Sustainability targets: Timing: Ongoing; Description and targets: 2050 net zero roadmap. The 2030 goal of cutting domestic emissions 14.5% from 2018 was met early (40.5% lower by 2025). A science-based (SBTi) target is planned for the second half of 2026. Sustainable products are to reach 16% of revenue by 2030 (7.0% in 2025).
Medium-term financial targets
Management has not published annual earnings guidance. Its quantitative anchors are the Vision 2030 targets (KRW 10tn revenue, KRW 1tn EBITDA, 10%+ EBITDA margin), the 20% minimum payout and the specialty-gas roadmap. The KRW 1tn EBITDA target implies roughly double the 2026 run-rate of about KRW 750–800bn.
Products & Services
Textile segment
| Product / brand | Description and key capabilities | Target customer | Launch / latest version | Pricing |
|---|---|---|---|---|
| creora spandex (core) | The world's largest-selling spandex brand: elastane filament in a wide range of deniers for circular knit, warp knit, covered yarn and denim | Fabric mills, apparel brands | Production since 1992; creora brand in continuous development | Market-priced; spot China 40D price is the benchmark |
| creora Power Fit | High-power spandex for shapewear and compression garments | Activewear and intimates brands | Long-standing line | Premium to commodity grades |
| creora Fresh | Spandex with odour-neutralising properties | Activewear, hosiery | Long-standing line | Premium |
| creora Color+ | Spandex that dyes more evenly with the companion fibre | Fabric dyers, fashion brands | Long-standing line | Premium |
| creora Black | Solution-dyed black spandex that resists see-through ("grin-through") in dark fabrics | Swimwear, leggings | Long-standing line | Premium |
| creora highclo | Chlorine-resistant spandex | Swimwear | Long-standing line | Premium |
| creora eco-soft | Spandex that sets at low temperature, cutting energy use in fabric finishing | Fabric mills | Long-standing line | Premium |
| Hygiene spandex | Spandex for diaper leg and waist elastics | Diaper makers | Long-standing line | Contract-priced |
| regen spandex | Spandex recycled from pre-consumer production waste; described by the company as the first commercial 100% recycled spandex | Sustainability-focused brands | Commercialised before 2024 | Premium |
| regen BIO spandex (creora bio-based) | Spandex partly made from renewable feedstock; elasticity and durability match conventional spandex. Feedstock was corn-derived in 2022–2025 and is sugarcane-derived bio-BDO from 2026. | Premium brands, EU and US markets | 2022; integrated Vietnamese bio chain from 2026 | Premium |
| regen nylon | Nylon 6 made from recycled pre-consumer waste | Outdoor and activewear brands | Commercialised before 2024 | Premium |
| regen Ocean Nylon | Nylon recycled from discarded fishing nets | Swimwear, outdoor brands | 2,007 | Premium |
| regen polyester | Polyester recycled from post-consumer PET bottles; holds a Korean eco-label (January 2026) | Apparel brands, public procurement | 2,008 | Premium |
| regen T2T polyester | Textile-to-textile recycled polyester made with Loop Industries' PET chip; pilot in Gumi | Circular-fashion programmes | 2,025 | Premium |
| regen Tech | Recycled engineering fibre line | Technical textiles | Recent | — |
| Nylon 6 filament (conventional) | Apparel and industrial nylon, including functional variants | Fabric mills | Since 1966 | Market-priced |
| Polyester filament (conventional) | Apparel polyester including differentiated variants | Fabric mills | Since 1973 | Market-priced |
| PTMG | Spandex polymer intermediate, made in-house and also sold externally | Internal use; spandex and polyurethane makers | Ongoing | Market-priced |
Trade & Others segment
| Product / service | Description | Target customer | Notes |
|---|---|---|---|
| Steel trading | Distribution of steel products, with heavy exposure to European demand | Industrial buyers | Hurt by reduced EU steel quotas in 2025–2026 |
| Chemical trading | Distribution of chemicals and petrochemicals | Industrial buyers | Volumes rose sharply in Q2 2026 and fell back in Q3 |
| Dong Nai Techyarn | Tire-cord yarn production in Vietnam | Tire makers | Seasonal; freight-sensitive |
| NF3 (Hyosung Neochem) | High-purity nitrogen trifluoride for cleaning CVD chambers in chip and display fabs. Capacity 8,000 t/yr at Yongyeon (Ulsan) and Oksan (Chungbuk) plus 3,500 t/yr at Quzhou, China: 11,500 t/yr in total, second in the world. | Samsung Electronics, SK hynix, display makers | NF3 was about 80% of gas sales in 2024 |
| F2/N2 mixture | Fluorine/nitrogen etching and cleaning gas | Semiconductor fabs | Part of the original six-gas portfolio |
| Cl2 | High-purity chlorine for etching | Semiconductor fabs | — |
| D2 (deuterium) | Used in annealing and in deuterated processes for advanced memory | Semiconductor fabs | High-value product |
| C4F7N | Low-global-warming alternative to SF6 for gas-insulated switchgear | Grid-equipment makers | Ties in with Hyosung Group's power-equipment business |
| HCl | High-purity hydrogen chloride | Semiconductor fabs | — |
| New specialty gases (pipeline) | Planned expansion from 6 to 15 products by 2030 | Semiconductor fabs | Commercialisation began in late 2025 and early 2026 |
| Bio-BDO (Vietnam) | 1,4-butanediol made from sugarcane with Geno fermentation technology; the company cites up to 90% lower CO2 than fossil BDO. 50,000 t/yr, expandable to 200,000 t/yr. | Internal PTMG/spandex; future TPU, PBAT and shoe-sole makers | Commercial operation in 2026 |
Financial Narrative
Income statement
Revenue fell at a compound annual rate of 2.7% from FY2021 to FY2025, from KRW 8.60tn to KRW 7.69tn. FY2021 revenue growth was 45.5% against a pandemic-depressed 2020 (KRW 5.9tn). The FY2021 consolidated net income is approximate, derived from attributable profit plus the minority share typical of the 25%-minority Chinese subsidiaries.
Commentary. The five years trace one full spandex cycle. In 2021, pandemic demand for stretch apparel met constrained supply. Gross margin reached 19.8% and attributable profit KRW 770bn, which funded a KRW 50,000 per-share payout. From 2022, Chinese producers, led by Huafon and Xinxiang, added capacity much faster than demand grew; Chinese supply rose about 13% a year between 2020 and 2025 against demand growth of about 8%. Gross margin collapsed to 4.9% in 2022, and operating profit fell 91%. In 2023–2025 the company rebuilt margins slowly through cost cuts, pricing that leaned on its own inventory discipline (fewer than 30 days of stock in early 2025, against about 50 days for Chinese rivals) and the nylon/polyester restructuring. Operating margins stayed within 2.8–3.5%.
Net income fell further in 2025 even though operating profit dipped only 7%. Three things drove this. Financing costs rose on the Neochem acquisition debt; net interest expense was KRW 21.5bn in Q4 2025 against KRW 13.1bn a year earlier. Amortisation of acquired intangibles increased. And Q4 2025 was a loss quarter: a net loss of KRW 23.3bn, of which KRW 30.0bn was attributable to owners.
Year-to-date 2026 and quarterly trajectory
Nine-month 2026 revenue was KRW 6.64tn (+13.5% YoY), operating profit KRW 385.2bn (+86.3%) and net income KRW 230.6bn (+275.2%). The company had already exceeded its full-year 2025 operating profit by the end of June 2026. Q3 2026 operating profit roughly matched one consensus measure (KRW 115.6bn) and fell 12.8% short of another. Spandex prices held at Q2 levels, but customers had bought ahead in Q2, so volumes fell.
Balance sheet
Under the company's own definitions, total borrowings were KRW 2,204.5bn at end-2025 against KRW 1,296.6bn a year earlier, and net borrowings were KRW 2,126.2bn against KRW 1,198.5bn, a 77% increase. On the same basis the debt-to-equity ratio rose from 159.6% to 193.3% and the net-debt-to-equity ratio from 65.9% to 108.7%. At 30 June 2026, net debt was about KRW 2.22tn, total assets KRW 6.34tn and owners' equity KRW 1.75tn (KRW 407,689 per share).
Commentary. The balance sheet changed character in 2025. Goodwill and intangibles rose from KRW 71bn to KRW 610bn, mostly from the Neochem purchase price allocation. Long-term debt more than doubled, funded by the first public bond and acquisition financing. Negative working capital deepened to KRW -589bn, so the company relies on rolling over short-term bank lines; KRW 1.21tn of debt was due within a year at end-2025. Net debt to EBITDA reached about 3.8x at end-2025, the highest of the five years. The 2026 earnings recovery should take that ratio towards 3x by year-end even if gross debt stays flat.
Cash flow
Operating cash flow fell 30% in 2025 while capital expenditure rose 65%, mainly on the Vietnamese bio-BDO plant and the Ningxia spandex expansion. Free cash flow turned slightly negative, and stayed negative in Q1 2026 at about KRW -26bn. Including the Neochem acquisition, investing outflows in 2025 were about KRW 1.35tn. Financing inflows of about KRW 865bn, nearly all new borrowing, covered the gap.
Key ratios
Payable days are not publicly disclosed, so the cash conversion cycle cannot be calculated. Interest coverage tightened in 2025: Q4 2025 operating profit of KRW 44.7bn covered net interest of KRW 21.5bn only about 2.1 times. It recovered to about 4.0 times in Q1 2026 and improved further in Q2–Q3 2026.
Ratio commentary. Returns depend almost entirely on the spandex cycle. ROE was below 10% in every year from 2022 to 2025 and fell below 1% in 2025 because of interest, amortisation and minority interests. The 25% minority stakes in several Chinese spandex subsidiaries (Ningxia, Guangdong and Zhuhai) and in Hyosung India take a meaningful share of profit in good years. Asset turnover has fallen steadily as the asset base grew through the Neochem purchase and Vietnamese construction, while trading revenue stayed flat. The 2026 recovery should lift ROE into double digits: brokers' attributable-profit forecasts of about KRW 265–270bn imply ROE of roughly 15%.
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Segment Overview
| Segment | What it contains | Main products and services |
|---|---|---|
Textile | Spandex, nylon and polyester filament, PTMG | creora spandex (apparel and hygiene grades), regen recycled spandex, nylon and polyester, regen BIO bio-based spandex, PTMG |
Trade & Others | Steel and chemical trading; Dong Nai Techyarn; Hyosung Neochem (specialty gases, from February 2025) | Steel and chemical distribution, tire-cord yarn, NF3, F2/N2, Cl2, D2, C4F7N, HCl |
Revenue by Segment and Revenue by Segment (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Textile revenue (KRW Bn) | 4,663 | 3,842 | 3,090 | 3,157 | 2,962 |
Trade & Others revenue (KRW Bn) | 3,933 | 5,041 | 4,437 | 4,619 | 4,733 |
Total revenue (KRW Bn) | 8,596 | 8,883 | 7,527 | 7,776 | 7,695 |
Textile share of revenue (%) | 54.2 | 43.3 | 41.1 | 40.6 | 38.5 |
Trade & Others share of revenue (%) | 45.8 | 56.7 | 58.9 | 59.4 | 61.5 |
Results by Segment and Segment Margins & Growth (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Textile operating profit (KRW Bn) | 156.9 | 185.0 | 185.7 |
Trade & Others operating profit (KRW Bn) | 56.6 | 85.6 | 65.8 |
Total operating profit (KRW Bn) | 213.4 | 270.7 | 251.5 |
Textile operating margin (%) | 5.1 | 5.9 | 6.3 |
Trade & Others operating margin (%) | 1.3 | 1.9 | 1.4 |
Textile revenue growth (%) | -19.6 | 2.2 | -6.2 |
Trade & Others revenue growth (%) | -12.0 | 4.1 | 2.5 |
Textile share of operating profit (%) | 73.5 | 68.4 | 73.8 |
Segment Revenue
| Metric | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Textile OP (KRW Bn) | 45.0 | 41.5 | 41.1 | 29.3 | 55.6 | 63.7 | 40.8 | 24.9 | 56.2 | 44.4 | 39.9 | 45.2 | 73.3 | 165.2 | 99.5 |
Trade & Others OP (KRW Bn) | 24.4 | 23.0 | 9.5 | -0.3 | 20.4 | 20.9 | 26.8 | 17.5 | 21.1 | 29.0 | 16.2 | -0.5 | 12.9 | 23.6 | 10.8 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (KRW Bn) | 8,596.0 | 8,882.7 | 7,526.9 | 7,776.1 | 7,694.8 |
Revenue growth (%) | 45.5 | 3.3 | -15.3 | 3.3 | -1.0 |
Gross profit (KRW Bn) | 1,699.1 | 432.1 | 531.3 | 620.4 | 629.3 |
Operating income (KRW Bn) | 1,423.7 | 123.6 | 213.4 | 270.7 | 251.5 |
Depreciation & amortisation (KRW Bn) | 198.2 | 237.1 | 247.8 | 266.8 | 307.6 |
EBITDA (KRW Bn) | 1,621.9 | 360.7 | 461.2 | 537.5 | 559.1 |
Pre-tax income (KRW Bn) | 1,404.6 | 31.1 | 122.7 | 213.1 | 110.8 |
Net income, consolidated (KRW Bn) | 1,023.0 | 19.2 | 98.7 | 183.8 | 38.2 |
Net income attributable to owners (KRW Bn) | 770.4 | 11.6 | 93.2 | 134.5 | 10.8 |
EPS basic (KRW) | 178,503 | 2,686 | 21,595 | 31,175 | 2,517 |
EPS diluted (KRW) | 178,503 | 2,686 | 21,595 | 31,175 | 2,517 |
Dividend per share (KRW) | 50,000 | 10,000 | 10,000 | 10,000 | 10,100 |
Gross margin (%) | 19.8 | 4.9 | 7.1 | 8.0 | 8.2 |
Operating margin (%) | 16.6 | 1.4 | 2.8 | 3.5 | 3.3 |
EBITDA margin (%) | 18.9 | 4.1 | 6.1 | 6.9 | 7.3 |
Net margin, attributable (%) | 9.0 | 0.1 | 1.2 | 1.7 | 0.1 |
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| Metric | 1Q25 | 2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | 3Q26 |
|---|---|---|---|---|---|---|---|
Revenue (KRW Bn) | 1,952.7 | 1,889.2 | 2,009.8 | 1,843.2 | 2,094.2 | 2,416.2 | 2,133.1 |
Operating profit (KRW Bn) | 77.4 | 73.3 | 56.1 | 44.7 | 86.2 | 188.8 | 110.2 |
Operating margin (%) | 4.0 | 3.9 | 2.8 | 2.4 | 4.1 | 7.8 | 5.2 |
Net income, consolidated (KRW Bn) | 24.5 | 21.4 | 15.7 | -23.3 | 50.9 | 123.9 | 55.8 |
Balance Sheet and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (KRW Bn) | 4,526.5 | 4,319.9 | 4,070.5 | 4,724.2 | 5,739.1 |
Cash & equivalents (KRW Bn) | 143.8 | 103.1 | 100.6 | 98.1 | 78.3 |
Short-term borrowings (KRW Bn) | 746.9 | 1,027.8 | 752.3 | 764.0 | 1,016.1 |
Current portion of long-term debt (KRW Bn) | 152.5 | 159.9 | 122.0 | 144.3 | 198.8 |
Long-term debt (KRW Bn) | 333.9 | 409.8 | 405.1 | 388.3 | 989.7 |
Total debt incl. leases (KRW Bn) | 1,248.4 | 1,624.1 | 1,306.7 | 1,318.1 | 2,239.8 |
Net debt (KRW Bn) | 1,067.8 | 1,488.1 | 1,177.7 | 1,172.7 | 2,119.4 |
Total equity incl. minorities (KRW Bn) | 1,763.6 | 1,515.5 | 1,568.7 | 1,819.9 | 1,956.9 |
Equity attributable to owners (KRW Bn) | 1,420.5 | 1,222.7 | 1,274.6 | 1,459.0 | 1,564.9 |
Goodwill & intangibles (KRW Bn) | 26.6 | 23.9 | 22.3 | 70.7 | 610.1 |
Inventory (KRW Bn) | 1,009.1 | 885.4 | 733.9 | 757.9 | 792.3 |
Trade receivables (KRW Bn) | 1,359.9 | 1,061.0 | 838.1 | 1,088.5 | 1,018.0 |
Working capital (KRW Bn) | 355.9 | -41.9 | -25.7 | -294.2 | -588.5 |
Book value per share (KRW) | 329,152 | 283,313 | 295,349 | 338,062 | 364,612 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (KRW Bn) | 643.3 | 293.4 | 602.0 | 654.9 | 456.1 |
Capital expenditure (KRW Bn) | -400.9 | -414.6 | -261.5 | -278.2 | -458.9 |
Free cash flow (KRW Bn) | 242.4 | -121.2 | 340.5 | 376.7 | -2.7 |
Dividends paid incl. to minorities (KRW Bn) | -27.4 | -270.2 | -76.2 | -73.5 | -43.2 |
Share buybacks (KRW Bn) | 0.0 | 0.0 | 0.0 | 0.0 | -5.4 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on year-end owners' equity (%) | 54.2 | 0.9 | 7.3 | 9.2 | 0.7 |
ROA on year-end assets (%) | 17.0 | 0.3 | 2.3 | 2.8 | 0.2 |
Pre-tax ROIC, EBIT / (equity + net debt) (%) | 50.3 | 4.1 | 7.8 | 9.0 | 6.2 |
Current ratio (x) | 1.16 | 0.98 | 0.99 | 0.87 | 0.77 |
Total debt / total equity (x) | 0.71 | 1.07 | 0.83 | 0.72 | 1.14 |
Net debt / EBITDA (x) | 0.66 | 4.13 | 2.55 | 2.18 | 3.79 |
Asset turnover (x) | 1.90 | 2.06 | 1.85 | 1.65 | 1.34 |
Inventory days (on cost of sales) | 53.4 | 38.2 | 38.3 | 38.7 | 40.9 |
Receivable days (on revenue) | 57.7 | 43.6 | 40.6 | 51.1 | 48.3 |
Revenue by Region (%)
| Country | FY2024 | FY2025 |
|---|---|---|
China — Jiaxing, Guangdong, Zhuhai, Quzhou, Ningxia (%) | 49.0 | 56.0 |
Vietnam — Nhon Trach, Dong Nai (%) | 23.1 | 20.0 |
India — Aurangabad (%) | 8.8 | 8.0 |
Türkiye — Çerkezköy, near Istanbul (%) | 8.6 | 7.0 |
Brazil — Joinville (%) | 4.9 | 4.0 |
Korea — Gumi mother plant (%) | 5.6 | 5.0 |
Valuation Snapshot
| Metric | Value |
|---|---|
Share price, early November 2026 (KRW) | about 286,500 |
Market capitalisation (KRW tn) | about 1.24 |
52-week high (KRW), 28 April 2026 | 535,000 |
Close on 30 October 2026 (KRW) | 267,000 |
Close on 4 November 2025 (KRW) | 208,000 |
1-year price change to early November 2026 (%) | about +38 |
Total shareholder return, 1 Jan 2023 – 12 Jul 2026 (%) | 3.7 |
Trailing P/E (x) | about 11.0 |
Forward P/E (x) | about 5.1 |
P/B (x) | about 0.71 |
EV/EBITDA, trailing (x) | about 5.2 |
EV/Sales, trailing (x) | about 0.46 |
Dividend yield (%) | about 3.5 |
Per-Share Data and Dividends & Capital Returns
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (KRW) | 50,000 | 10,000 | 10,000 | 10,000 | 10,100 |
Total dividends (KRW Bn) | 215.8 | 43.2 | 43.2 | 43.2 | 43.3 |
Payout ratio on attributable profit (%) | 28.0 | 372.7 | 46.3 | 32.1 | 400.8 |
Analyst Ratings & Targets
| Broker | Date | Target (KRW) |
|---|---|---|
iM Securities | 30 Oct 2026 | 430,000 (from 530,000) |
NH Investment & Securities | 3 Aug 2026 | 470,000 |
Shinhan Investment | 3 Aug 2026 | 600,000 |
Hana Securities | 20 Jul 2026 | 590,000 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Short-term borrowings (KRW Bn) | 764.0 | 1,016.1 |
Current portion of long-term debt (KRW Bn) | 144.3 | 198.8 |
Long-term debt (KRW Bn) | 388.3 | 989.7 |
Debt due within one year (%) | 68.9 | 54.3 |
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View Subscription PlansAnalyst Conclusions
Management guidance and consensus
| Metric | FY2025 | FY2026E | FY2027E | FY2028E |
|---|---|---|---|---|
| Revenue (KRW bn) | 7,695 | 8,718 | 8,798 | 8,962 |
| Operating profit (KRW bn) | 252 | 534 | 525 | 536 |
| Net income, attributable (KRW bn) | 11 | 268 | 265 | 285 |
| EPS (KRW) | 2,499 | 62,001 | 61,139 | 65,849 |
Management gives no annual numerical guidance beyond the Vision 2030 targets. Broker forecasts after the second quarter:
Revenue (KRW bn): FY2025: 7695; FY2026E: 8718; FY2027E: 8798; FY2028E: 8962
Operating profit (KRW bn): FY2025: 252; FY2026E: 534; FY2027E: 525; FY2028E: 536
Net income, attributable (KRW bn): FY2025: 11; FY2026E: 268; FY2027E: 265; FY2028E: 285
EPS (KRW): FY2025: 2499; FY2026E: 62001; FY2027E: 61139; FY2028E: 65849
These are iM Securities estimates from August 2026. Nine-month operating profit of KRW 385bn plus fourth-quarter forecasts of KRW 128–133bn point to 2026 operating profit of about KRW 515bn. Brokers expect textile operating profit of about KRW 458bn in 2026 and KRW 500bn in 2027.
Bull case
-
Supply discipline lasts to 2027. With almost no net Chinese additions in 2026, demand growing 9–10% and a rival restructuring, utilisation and spreads stay high. Even after the Q3 dip, textile margins of 11–17% compare with about 6% in 2025.
-
The valuation already discounts a downturn. At about 0.7x book and about 5x forward earnings, the price implies 2026–2027 profit roughly half of forecasts. A trailing yield of about 3.5% provides some support.
-
Deleveraging plus optionality. Free cash flow at about KRW 500bn of operating profit, with lower capex now the bio-BDO plant is built, could take net debt / EBITDA below 2.5x by 2027. Neochem's new gases and bio-BDO add growth that is not in the price.
Bear case
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The peak has passed. Q3 2026 operating profit fell 42% from Q2 as customers destocked. With about 125,000 t of Chinese capacity due in 2027, the 2026 spreads may be the high point of a short cycle, as in 2021–2022.
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The balance sheet and the acquisition destroy value. Net debt of about KRW 2.2tn, more than half of it short-term, and a KRW 920bn acquisition that has lost money so far cap returns. ROE was 0.7% in 2025.
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The governance discount persists. Related-party dealings, NPS opposition and owner-family control (42.7%) have kept the stock below book value for most of the past four years. TSR since 2023 is only 3.7%, despite the group's power-equipment boom.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing | What to watch |
|---|---|---|
| Q4 2026 results | Late January 2027 | Whether operating profit recovers to about KRW 130bn as delayed volumes and price pass-through come through |
| FY2026 dividend declaration | February–March 2027 | Whether DPS is raised well above KRW 10,100, given expected attributable profit of about KRW 265bn |
| Chinese spandex prices and inventory days | Monthly | Chinese 40D prices, inventory days (about 23 in April 2026) and utilisation |
| 2027 Chinese capacity start-ups | 2,027 | Timing of Huafon's and Xinxiang's projects |
| Neochem profitability | Quarterly | Whether the unit breaks even, and how the new-gas line-up ramps up |
| Net debt reduction | Quarterly | Path from about KRW 2.2tn; refinancing of short-term debt |
| Bio-BDO ramp-up and outside sales | 2,027 | Utilisation of the 50,000 t plant; first TPU and PBAT customers |
| March 2027 AGM | March 2027 | Cumulative voting in practice; NPS votes; possible treasury-share cancellation |
| SBTi target submission | Late 2026 – 2027 | Credibility of decarbonisation at overseas plants |
Q4 2026 results: Timing: Late January 2027; What to watch: Whether operating profit recovers to about KRW 130bn as delayed volumes and price pass-through come through
FY2026 dividend declaration: Timing: February–March 2027; What to watch: Whether DPS is raised well above KRW 10,100, given expected attributable profit of about KRW 265bn
Chinese spandex prices and inventory days: Timing: Monthly; What to watch: Chinese 40D prices, inventory days (about 23 in April 2026) and utilisation
2027 Chinese capacity start-ups: Timing: 2027; What to watch: Timing of Huafon's and Xinxiang's projects
Neochem profitability: Timing: Quarterly; What to watch: Whether the unit breaks even, and how the new-gas line-up ramps up
Net debt reduction: Timing: Quarterly; What to watch: Path from about KRW 2.2tn; refinancing of short-term debt
Bio-BDO ramp-up and outside sales: Timing: 2027; What to watch: Utilisation of the 50,000 t plant; first TPU and PBAT customers
March 2027 AGM: Timing: March 2027; What to watch: Cumulative voting in practice; NPS votes; possible treasury-share cancellation
SBTi target submission: Timing: Late 2026 – 2027; What to watch: Credibility of decarbonisation at overseas plants
Analyst verdict
Hyosung TNC owns the best franchise in the spandex industry and gets little credit for it in its share price. Its share of global supply, its plants spread across six countries, its feedstock advantages and its brand relationships allowed it to stay profitable through four years in which most Chinese rivals operated at negative gross margins. The 2026 rebound shows how much the business can earn when the market tightens. First-half operating profit exceeded the whole of 2025, and textile margins reached 17% in Q2.
The problem is everything wrapped around that core. About 60% of revenue comes from a trading business that adds volume but little value. The KRW 920bn purchase of Hyosung Chemical's gas unit was made at the bottom of the textile cycle, from a distressed affiliate, with borrowed money. It roughly doubled net debt and has so far lost money. Governance concerns are well documented, from NPS opposition to the director pay ceiling to the chairman's board seat, and they keep the stock at a discount to book value despite double-digit forward ROE.
The investment case therefore depends on how long the spandex upcycle lasts and how management uses it. If supply discipline holds into 2027 and the company directs the extra cash to reducing debt and to higher dividends, rather than to new related-party transactions, the gap between a price of about 0.7x book and 5x forward earnings and the underlying earning power should narrow. Specialty gases and bio-materials offer real but still unproven upside. The Q3 2026 dip, however, is a reminder that spandex cycles can turn quickly, and Chinese supply is set to grow again in 2027. On balance, the stock looks attractively valued as a cyclical recovery play with balance-sheet and governance risks. Its re-rating is likely to depend on visible deleveraging and stronger shareholder returns as much as on spandex prices.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Tenure / appointment | Background and prior roles | Education | Age |
|---|---|---|---|---|---|
Lee Chang-hwang | Co-CEO (Textile division), inside director, board chair | CEO from March 2026 | Joined Dongyang Nylon's Central Technology Research Institute in 1983. Executive at Spandex PU (2003); head of Spandex PU (2005); head of China spandex (2010); head of Strategy Division (2019); director of the China spandex and Jiaxing Chemical subsidiaries (2023–) | B.S. Chemical Engineering, Seoul National University | — |
Yoo Young-hwan | Co-CEO (Trading division), inside director | CEO from March 2026 | Joined Hyosung Corporation in 1992 (Steel Team). LA office, Strategy Division (1995); head of management strategy and overseas subsidiaries (2011); head of Management Diagnosis Office (2018); head of Support Division (2023) | B.A. English Language & Literature, Sungkyunkwan University | — |
Cho Hyun-joon | Inside director; Hyosung Group chairman and CEO of Hyosung Corporation | Inside director since the 2018 listing; nominated again in March 2026 | Third-generation owner; group chairman since 2017; previously led the group's trading and textile performance groups | Yale University (B.A.); Keio University (graduate study) | 58 |
Yoo Chul-kyu | Outside director; chair of the ESG Management Committee; audit committee member nominee (2026) | Incumbent | Outside director | — | — |
Lee Jae-woo | Outside director nominee and audit committee member (2026) | 2026 AGM nominee | — | — | — |
Kim Myung-ja | Director nominee (2026) | 2026 AGM nominee | Former Minister of Environment of Korea | — | — |
Lee Geon-jong | CEO, Hyosung Neochem (subsidiary) | From February 2025 | Former head of Samsung Electronics' LCD manufacturing centre; CEO of Wonik Materials; CEO of Hyosung Chemical (2020–) and Hyosung Advanced Materials | B.S. Chemistry, Konkuk University | — |
Kim Chi-hyung | Former CEO | January 2022 – March 2026 (retired) | Joined Hyosung R&D in 1983. Plant manager at Anyang and Gumi; head of Spandex PU; head of the Vietnam and Dong Nai subsidiaries | B.S. Chemical Engineering, Seoul National University | Mid-60s |
Kim Yong-seop | Former CEO | 2018 – 2021 | Spandex specialist and former strategy executive | Seoul National University | — |
“—” = not publicly disclosed.
Workforce Metrics
| Metric | FY2025 |
|---|---|
Directors and auditors paid (number) | 6 |
Average pay per director (KRW Mn) | 460 |
Highest-paid individual: Cho Hyun-joon (KRW Mn) | 2,440 |
Average employee pay (KRW Mn) | 77.4 |
Ratio of average director pay to average employee pay (x) | 6.0 |
Major Shareholders
| Holder | Relationship | Stake (%) |
|---|---|---|
Hyosung Corporation | Largest shareholder (holding company) | 20.78 |
Cho Hyun-joon | Group chairman | 20.73 |
Song Kwang-ja | Related party (Cho family) | 0.73 |
Cho In-young | Related party (Cho family) | 0.14 |
Cho In-seo | Related party (Cho family) | 0.14 |
Cho Jae-hyun | Related party (Cho family) | 0.07 |
Tina Mikyung Lee | Related party | 0.04 |
Cho Jae-ha | Related party (Cho family) | 0.02 |
Cho In-hee | Related party (Cho family) | 0.02 |
Cho Su-in | Related party (Cho family) | 0.02 |
Cho Yang-rae | Related party | 0.01 |
Lee Sang-woon | Related party (group vice chairman) | 0.01 |
Total, largest shareholder and related parties | — | 42.72 |
Minority shareholders (41,938 holders) | Free float | 42.80 |
Competitive Landscape
Key Competitors
| Competitor | Country | Positioning versus Hyosung TNC |
|---|---|---|
Huafon Chemical (Zhejiang Huafeng Spandex) | China | Global number two and the largest Chinese producer; very large capacity, about 75,000 t more due by end-2026. Profit expected to rise 71–112% in H1 2026. |
Xinxiang Chemical Fiber (Bailu) | China | Major Chinese producer building a 100,000 t/yr functional spandex project (first phase began January 2026) |
Zhejiang Huahai / Haili | China | Mid-sized Chinese producer with relatively high margins |
Yantai Tayho Advanced Materials | China | Spandex alongside aramid; thin spandex margins |
The Lycra Company | USA | Original inventor of spandex; strong premium brand; emerged from Chapter 11 in May 2026 with about USD 1.2bn less debt. FY2025 revenue USD 724m. |
Asahi Kasei (ROICA) | Japan | Premium functional and sustainable spandex |
Toray Opelontex | Japan | Premium spandex in Japan and Asia |
Taekwang Industrial (TK Chemical) | Korea | Domestic rival in spandex and nylon; scaling back ageing Chinese lines |
SK Specialty | Korea | Leading NF3, WF6 and monosilane supplier (2023 sales KRW 681bn); larger and more diversified |
Peric Special Gases (CSSC group) | China | Largest NF3 capacity globally; cost leader |
Kanto Denka Kogyo | Japan | Established NF3 and fluorine-gas producer |
Mitsui Chemicals | Japan | NF3 and electronic gases |
Peer Comparison FY2025
| Metric | Hyosung TNC | Huafon Chemical | Xinxiang Chemical Fiber | Zhejiang Haili |
|---|---|---|---|---|
Revenue FY2024 (USD Mn) | 5,703 | 3,741 | 1,023 | 820 |
Revenue FY2025 (USD Mn) | 5,416 | 3,368 | 1,094 | 812 |
Revenue growth FY2025 (%) | -5.0 | -10.0 | 6.9 | -1.0 |
Operating profit FY2025 (USD Mn) | 177 | 294 | 47 | 87 |
Operating margin FY2025 (%) | 3.3 | 8.7 | 4.3 | 10.7 |
EBITDA FY2025 (USD Mn) | 393 | 495 | 170 | 143 |
EBITDA margin FY2025 (%) | 7.3 | 14.7 | 15.5 | 17.6 |
