[Click eStock] "Hanssem, Earnings Recovery Expected... Target Price Up 15%"

[Asia Economy Reporter Park Jihwan] Hanssem is expected to see performance improvement starting from the fourth quarter of last year due to cost reduction from business restructuring and increased sales of interior packages.

On the 7th, Yuanta Securities gave Hanssem a 'Buy' investment rating and set a target price of 91,000 KRW. The previous target price was raised by 15% from 79,000 KRW. Hanssem's closing price on the 6th was 69,100 KRW.

Researcher Kim Giryong of Yuanta Securities stated, "Hanssem's consolidated performance in the fourth quarter of last year is expected to be sales of 435.6 billion KRW and operating profit of 14.9 billion KRW, in line with market expectations," adding, "Operating profit is expected to increase by 114% compared to the previous quarter, which recorded an earnings shock."

This reflects the reduction of subsidiary losses due to last year's restructuring in China and the effect of increased interior package sales. It is understood that package sales (based on shipments) in the fourth quarter of last year doubled compared to the previous quarter, reaching about 3,000 sets, due to an increase in Rehouse dealerships and home shopping programming.

Researcher Kim said, "This year, Hanssem's performance recovery is expected to focus on increased sales per store in the dealership channel and expanded package sales," adding, "Despite last year's poor performance, the company focused on transforming its sales network through expanding Rehouse dealerships, and this year it will concentrate on performance expansion using related channels."

He also added, "With the lowered performance base last year and profit recovery starting from the fourth quarter, along with the contraction of new housing supply and aging of inventory homes, Hanssem's competitiveness in the B2C sector within the industry through business area expansion remains valid."

This content was produced with the assistance of AI translation services.