[Click eStock] "Hansome, Q2 Earnings Protected Thanks to Online"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 42,000 Won... Closing Price on 29th at 33,100 Won

Hansome At Home Service (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Hansome is analyzed to have succeeded in defending its second-quarter performance thanks to online sales.

According to Daishin Securities on the 30th, Hansome's second-quarter sales are estimated at 272.4 billion KRW, and operating profit at 14.4 billion KRW. These figures represent decreases of 4% and 3%, respectively, compared to the previous year. This is attributed to the improvement in domestic consumer sentiment following the slight easing of social distancing measures since last month. The decline in offline department store sales was around 10%, which is an improvement compared to the previous quarter's approximately 20% decrease.

In the case of online channels, strong growth partially offset the sluggish offline sales. Online sales are estimated to have been about 150 billion KRW last year and are expected to increase to the 200 billion KRW level this year. Researcher Yoo Jeong-hyun of Daishin Securities stated, "The operating profit margin of the online channel reaches the mid-30% range, so the operating profit of the online business division is expected to approach about 70% of the total. Considering the maturity of the Hansome brand and the negative growth trend of the overall offline apparel market, the value of the online channel is increasing further." He added, "The company believes that considering the growth potential of the online channel, achieving 300 billion KRW in online sales in the short term is also possible."

The newly launched cosmetics business is expected to have a positive impact on valuation expansion. Although the brand name and product planning for the cosmetics business, which will officially launch next year, have not been finalized, some basic products have already been developed. Researcher Yoo said, "While it may not contribute significantly to performance immediately, the cosmetics business is positive in terms of expanding the company's business portfolio, which has been limited to the domestic fashion business, and resolving valuation discounts." He added, "Based on the stability of the core business, which acts as a cash cow, once the new cosmetics business begins to show results, a full-scale valuation rerating will be possible."

Daishin Securities has issued a 'Buy' investment opinion on Hansome. The target price has been raised from the previous 35,000 KRW to 42,000 KRW. The closing price on the 29th was 33,100 KRW.

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