[Click eStock] "Hanssem, Expecting Earnings Rebound This Year... Focus More on the Second Half Than the First Half"

[Asia Economy Reporter Eunmo Koo] Hanssem is expected to achieve a performance rebound this year, with analysis suggesting that more attention should be paid to the second half of the year rather than the first half.

According to Shin Young Securities on the 9th, the number of Rehouse package shipments by Hanssem in the fourth quarter of last year was 3,016, nearly a 90% increase compared to 1,588 units in the third quarter. Researcher Sera Park of Shin Young Securities explained in a report, “With the entry into the peak season in October, housing sales transactions also rebounded, resulting in generally favorable figures,” adding, “Although the number of package shipments dropped to 848 in December, the off-season, due to the impact of the 12.16 regulations along with a decline in sales transactions, the drop was not excessive compared to expectations and was considered favorable.” It is expected that even during the off-season in January and February this year, monthly package shipments will steadily maintain between 700 and 800 units, and from the peak season in March, the monthly figure will recover to 1,000 units.

The number of dealerships, which was only 82 at the beginning of last year, grew to 450 by the end of last year. Currently, about 80 affiliated stores are preparing to convert to dealerships, so it is expected that more than 500 dealerships will be secured in the first quarter of this year. The company is likely to achieve its mid- to long-term dealership number targets (700 in 2020, 1,000 in 2021) ahead of schedule. Researcher Park predicted, “Last year’s annual Rehouse dealership sales recorded 224 billion KRW, supported by strong package sales and an increase in the number of dealerships, and this year, sales are expected to reach 527 billion KRW as sales per store normalize.”

The performance rebound is expected to begin in the second quarter of this year, with significant growth in both growth rate and profits anticipated after the third quarter. Researcher Park stated, “Although the number of dealerships increased last year, it takes about six months to train sales staff (RD) affiliated with dealerships, and the contribution of RD staff to sales on the marketing front can be expected from the second half of this year,” adding, “Sales per store this year are expected to nearly double compared to last year, leading overall external growth.”

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