Hyosung Heavy stock: SK Securities trims target amid sector weakness

SK Securities lowered its target for Hyosung Heavy Industries on October 19, 2026, while maintaining a Buy rating. The assessment was reported by EDAILY and reflects weaker sentiment toward power-equipment stocks rather than a change in the long-term infrastructure demand outlook.

Temporary pressure on third-quarter results

SK Securities analyst Na Min-sik estimated third-quarter revenue at KRW 1.98 trillion, up 21.9 percent year over year, while operating profit was projected at KRW 277 billion, an increase of 26.1 percent. The expected operating margin was 14 percent, but operating profit was seen 10.6 percent below consensus.

The report attributed the anticipated shortfall to delayed revenue recognition caused by shipping disruptions linked to geopolitical uncertainty in the Middle East and delivery-schedule adjustments for high-margin North American projects. It also cited one-time costs from higher projected construction expenses.

Valuation multiple drives target reduction

The target was reduced from KRW 4 million to KRW 2.5 million. SK Securities kept its 2027 earnings-per-share estimate at KRW 125,258 but lowered the applied price-to-earnings multiple from 32 times to 20 times. The analyst said power equipment continued to underperform other parts of the artificial-intelligence infrastructure group and that the market was assessing how quickly the order backlog would convert into revenue.

For investors, the distinction between temporary execution issues and a deterioration in demand remains central. The report said client schedule changes had deferred revenue recognition rather than eliminated demand, while ongoing utility and data-center investment continued to support the broader infrastructure market.

The broader South Korean market can be monitored through the KOSPI theme.

Further news and analyses on Hyosung Heavy stock are available in the company topic.