[Featured Stock] Why HuoSeng Stock Jumped Over 12% Today: It Was Tungsten

HuoSeng's stock price surged 12.90% during today's trading session, climbing to the 14,000 won mark. When you consider that the KOSDAQ index has been moving within about 1% daily swings recently, this is an individual stock story that moved far more dramatically than the broader index. If you narrow it down to one reason, it all comes down to tungsten.

What company is this, and why is tungsten such a big deal?

HuoSeng is a chemical materials company that produces both specialty gases used in semiconductor processing and electrolytes for secondary batteries. Its flagship product on the semiconductor side is WF6 (tungsten hexafluoride), which is an essential gas for the wiring process. Here's the problem: tungsten powder accounts for over 60% of this gas's production cost, and China controls 80% of global tungsten production.

As China tightens tungsten exports, two Japanese manufacturers (Showa Denko Kanto and Central Glass) that produce this gas are facing potential shutdowns of their production lines in the second half due to inventory depletion. Since Japan was supplying 30% of global production, this gap is anything but small. HuoSeng, with its 900-ton annual production capacity domestically and abroad, is being highlighted as one of the rare alternatives that can fill this void—and that's the backdrop for today's stock surge.

So how much has performance actually improved?

HuoSeng recorded revenue of 565.8 billion won and operating profit of 37 billion won for Q1 2026, hitting an operating margin of 6.5%. Considering that their full-year 2025 operating profit was 25.3 billion won (up 364.7% year-over-year), they earned more in a single quarter this year than in the entire previous year. Net income came in at -29 billion won in the red, which appears to stem from non-operating factors like foreign exchange and derivatives valuation, but operating profit from their core business is showing clear improvement.

Securities firms have been reflecting this momentum by continuing to raise their price targets. In May, Eugene Investment Securities raised their HuoSeng price target from 12,000 won to 20,000 won while maintaining a buy rating, estimating 2026 performance at revenue of 564.8 billion won and operating profit of 52.8 billion won (up 20% in revenue and 108% in operating profit year-over-year). Even based on today's closing price, there's still room to run toward that target.

Their electrolyte business is also gaining traction

HuoSeng's other pillar—secondary battery electrolyte materials (lithium hexafluorophosphate, LiPF6)—is also showing signs of price recovery recently. As prices for related materials rise due to tight lithium supply, this compounds with the positive catalyst on the semiconductor side, drawing in buying pressure. In fact, throughout this year, HuoSeng's stock has repeatedly surged and plunged as semiconductor materials and electrolytes alternately grab the spotlight, and each time, we've seen institutions and foreign investors buying in tandem.

Still, there are risks worth noting

It's not all sunshine and rainbows.

· Over the past three years, HuoSeng has issued convertible bonds (maturing October 2025) and exchangeable bonds (maturing December 2025) in succession, plus conducted a paid-in capital increase in early 2024. If this fundraising pattern repeats, it could eventually convert to shares and return as overhang.

· A stock that jumps over 12% in a day like today carries equally high volatility. If the tungsten supply issue resolves faster than expected or China eases export restrictions, the current bullish thesis could weaken.

· The fact that they're posting net losses is also something worth monitoring in terms of cash flow and financial health.

So, where does this stock stand right now?

Right now, HuoSeng is one of the stocks most directly exposed to the question: "If China weaponizes resources, who comes out ahead?" Given that performance (operating profit exceeding a full year in a single quarter) and stock price (significantly up since year-start) are moving in lockstep, it's hard to dismiss today's surge as just another thematic pump.

There's one key thing to watch: how severe and how long the production disruptions at Japanese specialty gas makers persist in the second half. The longer this situation stretches, the longer HuoSeng's tailwind lasts. Conversely, if China eases restrictions or Japan finds alternative supply routes quickly, this rally could lose momentum.

The fact that the market is putting more weight on improving performance despite carrying the overhang from convertible and exchangeable bonds tells you everything about why this stock suddenly became the talk of the town. Whether semiconductor materials revenue actually jumped in next quarter's earnings—that'll be the first real test of whether this interest holds up.

This article is written for informational purposes to aid investment decisions and does not constitute a recommendation to buy or sell any specific stock.

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