[Click eStock] "Hansome, 4Q Online Growth Continues... Investment Appeal Remains Low"

[Asia Economy Reporter Oh Ju-yeon] KB Securities forecasted on the 8th that Hansome is expected to improve profits through the expansion of online sales and the elimination of loss-making brands in the fourth quarter of last year. However, compared to other companies in the same industry, its sales growth rate in 2020 is low, resulting in relatively lower investment attractiveness.

Hansome's sales in the fourth quarter of last year are expected to be 409.8 billion KRW, and operating profit 35.8 billion KRW, increasing by 4.1% and 18.4% respectively compared to the same period last year. Although the growth of its own brands was sluggish, it was explained that sales growth was driven by the base effect.

Researcher Han Nuri stated, "Department store women's wear sales have been declining for 13 consecutive months," adding, "In October last year, women's casual wear sales decreased by 22.0% compared to the same period last year." This is the lowest growth rate observed since January 2008. She also added that higher average temperatures contributed to poor sales of high-priced driving products.

Operating profit is expected to increase significantly due to reduced commission fees from increased online sales and the elimination of loss-making brands. Researcher Han estimated, "Sales from the company's own mall in the fourth quarter of last year are expected to increase by 35.0% compared to the same period last year, accounting for 12% of total sales."

However, compared to the average sales growth rate of 10.1% in 2020 for the eight companies covered by KB Securities in the textile and apparel sector, Hansome's rate is low at 3.6%. It was diagnosed that as a domestic-based ready-to-wear business, applying premium pricing is also difficult. Reflecting this, the investment opinion was maintained as 'Buy' and the target stock price was kept at 37,000 KRW.

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