[Click eStock] "Hansol Chemical, From Semiconductors to Secondary Batteries... Target Price Up 31%"

Korea Investment & Securities Report, Q2 Operating Profit 38.1 Billion KRW
"Record High in 5 Years... Further Upside Expected"

[Asia Economy Reporter Minji Lee] Korea Investment & Securities maintained a buy rating on Hansol Chemical on the 13th and raised the target price by 31% from the previous level to 170,000 KRW. The company is expanding its scope to semiconductor, display, and secondary battery materials, leading to expectations of further stock price increases.

Hansol Chemical is estimated to record sales of 151.4 billion KRW and operating profit of 38.1 billion KRW in the second quarter. Operating profit is expected to improve by 8% compared to the previous quarter. The biggest concern for the second-quarter performance was the shipment volume of QD materials, as TV demand was expected to decline significantly due to COVID-19. However, TV demand showed stronger-than-expected performance, resulting in QD material shipments exceeding expectations.

Researcher Jungwoo Yoo explained, “Demand for semiconductor precursors is also increasing as our clients’ production volumes rise,” adding, “In addition to DRAM and NAND, the supply volume for foundry is increasing, contributing to profit growth.”

The operating profit contribution of hydrogen peroxide, the main product this year, is expected to fall below 50%. This is because the profit growth rate of semiconductor precursors and QD materials is faster, and sales of secondary battery materials have also started contributing to profits since the second half of last year. Currently, among secondary battery material products, sales are generated from anode binder and separator binder, and cathode binder is expected to generate sales next year.

Researcher Jungwoo Yoo stated, “Sales of secondary battery materials this year will slightly exceed 10 billion KRW, but from next year, sales will rapidly increase, raising profit contribution,” and added, “Although the stock price has shown a significant rise in five years recently, further stock price increases are expected.”

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