Daily Brief Energy/Materials: Hyosung Corporation, Polyplex Corporation, Crude Oil, Oat Agrio, Apex Mining Co, Shikoku Chemicals, International Paper Co, HELLENiQ ENERGY Holdings S.A., Avery Dennison and more

• I provide an update of the potential KOSPI200 rebalance candidates in December 2026.
• The bottom 5% market caps in KOSPI200 could be excluded from the KOSPI200 rebalance in December 2026. These 10 stocks are down on average 24.5% YTD vs KOSPI (up 56.1%).
• I also provide five potential inclusion candidates which are up on average 57.6% YTD. 

• Revenue reached INR 2,254 crore and EBITDA INR 296 crore; PAT attributable to Polyplex shareholders turned to INR 91 crore from a INR 19 crore loss.
• The recovery is operational: EBIT swung by nearly INR 288 crore YoY even as other income declined, indicating a genuine improvement in core profitability.
• Turnaround is now visible, but 13% EBITDA margin should not yet be treated as normalized; spreads, utilization and cash conversion need another quarter of confirmation.

• Crude oil futures pared earlier gains Tuesday on reports a US-Iran peace deal was close, after fresh attacks on shipping in the Red Sea and Gulf of Oman pushed benchmarks higher.
• Oct26 ICE  Brent futures were up 1.3% from Monday’s close at $88.89/b at 2022 BST, having earlier topped $90/b, while Sep26 NYMEX  WTI was 1.4% higher at higher at  $83.24/b .
• Benchmarks softened after Pakistan signalled progress on an Iran-US deal that could see commercial shipping return to the Strait of Hormuz.

• Oil market participants are now trying to decide if the prompt NYMEX crude oil contract can challenge the upper end of our previously delineated trading range.          
• We will see over the next few days whether traders are anticipating “duration,” i.e. a further tightening of the market, or renewed strikes if President Trump’s patience runs out again.                     
• We will be so bold to suggest that the “duration” scenario would imply a slow and progressive rise in oil prices, whereas the military scenario would imply increased volatility.              

• In 1H FY12/26, the company achieved revenue of JPY19.5bn, operating profit of JPY3.5bn, and net income of JPY2.4bn.
• Agrichemicals field revenue was JPY8.1bn, with strong domestic and overseas sales of plant protection materials and green products.
• Fertilizers and biostimulants field revenue reached JPY11.4bn, with solid performance in domestic and overseas markets like Spain and Indonesia.

• Earnings momentum intact: Consolidated net income rose 50% YoY to PHP2.57bn in 2Q26 on revenue of PHP6.52bn, up 30%, as realized gold at USD4,424/oz offset a 12% volume decline.
• Grade headwind, throughput offset: Maco gold grade fell 26% YoY to 2.49 gpt in lean zones, while tonnes milled rose 20% to 277,284t; Tagbaros drain tunnel targets flooded higher-grade blocks.
• Valuation at PHP14.96; FY26e P/E of 7.8x and EV/EBITDA of 5.5x on estimated EPS of PHP1.85; 1H26 net income of PHP5.39bn is 51% of the full-year estimate.

• Revenue increased by 34.1% YoY to JPY45.8bn, with operating profit up 79.7% YoY to JPY9.4bn.
• Chemicals business revenue rose across core areas, driven by inorganic and fine chemicals, boosting operating profit margin.
• Full-year forecast revised upward, with expected revenue of JPY94.0bn and operating profit of JPY18.0bn.

• International Paper’s second quarter 2026 results indicate a business navigating a complex operating environment with a clear focus on execution, cost optimization, and strategic investment.
• The company reported a 1.7% year-over-year increase in box volumes in North America, with expectations to outpace the industry by approximately 2% for the full year.
• Operationally, mill performance improved by about 500 basis points, and key projects such as the Riverdale machine conversion and the NORPAC acquisition advanced on schedule, reflecting progress on the company’s 80/20 portfolio rationalization strategy.

• HELLENiQ ENERGY is strategically pivoting from a traditional refining and marketing company to an integrated energy group, with significant investments in renewable energy under its ‘Vision 2025’ plan, aiming to de-risk its business model from the volatility of the oil and gas sector.
• The company maintains a dominant position in the Greek and Southeast European downstream sector, operating three of the region’s key refineries. This provides a stable, albeit mature, cash flow base to fund its energy transition initiatives.
• Financial performance is intrinsically linked to volatile refining margins and oil prices, leading to fluctuating profitability. However, the company has demonstrated a commitment to shareholder returns through consistent dividend payments, supported by a recent period of strong operational performance.

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• Avery Dennison reported solid financial results for the second quarter of 2026, demonstrating continued growth across key metrics despite a complex inflationary and geopolitical environment.
• The company posted 8% organic sales growth, with adjusted earnings per share (EPS) rising 19% year-over-year to $2.89.
• This performance was partly supported by customer inventory prebuy activity, especially in the Materials Group, which contributed approximately half of the organic growth in the quarter and added an estimated $0.25 per share to earnings.