[Click eStock] "Hanssem, Rehaus Growth Expected... Target Price Up 13%"

[Asia Economy Reporter Minji Lee] Shin Young Securities maintained a buy rating on Hanssem on the 10th, citing high growth expectations for its Rehouse business, and raised the target price by 13% from the previous level to 100,000 KRW.

Hanssem recorded sales of 438.6 billion KRW in the fourth quarter, down 10.3% year-on-year. Operating profit increased by 10.9% during the same period to 21.8 billion KRW.

Researcher Sera Park of Shin Young Securities said, “Operating profit exceeded market expectations, resulting in an earnings surprise,” adding, “Selling and administrative expenses (8 billion KRW) decreased due to workforce restructuring at Rehouse affiliated stores and reduced advertising expenses, and the deficit of the Chinese consolidated subsidiary (1 billion KRW) also shrank.”

Sales at Rehouse agency stores grew 38% quarter-on-quarter to 78.2 billion KRW. This was due to the peak season following a rebound in housing transactions in October and November last year. The number of Rehouse package shipments in the fourth quarter was about 3,000, doubling from the previous quarter.

Sales growth per Rehouse agency store is expected to accelerate this year. As of the end of last year, the number of agency stores increased by 60 from the third quarter to 451, and sales per store also rose by 21.4%. Researcher Park explained, “Although the number of sales transactions and package shipments decreased somewhat to 848 due to the real estate regulations implemented on December 16, the results were better than expected,” adding, “Even during the off-season in January and February, monthly package shipments are expected to steadily maintain between 700 and 800.”

Hanssem’s sales this year are projected to increase by 8.5% year-on-year to 1.8 trillion KRW, and operating profit is expected to rise by 60.9% to 90 billion KRW. Researcher Park stated, “Sales from Rehouse agency stores are expected to more than double to 530 billion KRW compared to last year, contributing to improved company profitability,” and added, “Despite strong real estate regulations, growth visibility is high due to remodeling demand and structural changes such as agency store openings.”

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