[Click eStock] "Hanssem, Earnings Turnaround This Year Driven by Market Share Expansion"

[Asia Economy Reporter Park Jihwan] Hanssem is expected to achieve a performance rebound this year through effects such as market share expansion by lowering product unit prices.

Kim Sunmi, a researcher at KTB Investment & Securities, diagnosed on the 13th, "Considering the sales power confirmed by increased sales per agency, the sales rate of Rehouse packages, and market share expansion through product unit price reduction, a performance turnaround in 2020 is becoming visible." Accordingly, the investment opinion was maintained as 'Buy,' and the target stock price was revised upward from the previous 80,000 KRW to 96,000 KRW.

Researcher Kim Sunmi stated, "As of the end of last year, Hanssem interior agencies numbered 451, a sharp increase of 290 stores compared to the end of the first half," and "typically, the time required for new stores to reach normal operations is about six months, so fourth-quarter sales per store last year are expected to expand to about twice the level of the first half."

In particular, selling 848 Spile packages even in the off-season of December was seen as an encouraging achievement. The sales rate of Spile packages compared to single-item sales

improvement and an increase in customer attraction (based on home shopping, calls per broadcast increased from 1,200 to 2,000) are factors that create expectations for this year's performance as well.

However, the variable is the cost aspect. Researcher Kim said, "Due to reductions in product and construction costs, expansion of advertising and promotion expenses on the order of 10 billion KRW, and expansion of standard sales stores (showrooms) (from 22 stores to 50 stores by year-end), first-half profitability is expected to be relatively weaker compared to the second half."

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