[Click eStock] "Hanssem, Q2 Earnings Surprise... Target Price Up 18%"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment maintained a 'Buy' rating on Hanssem on the 14th, stating that the company's Q2 earnings recorded a surprise that exceeded market expectations, and raised the target price by 17.7% from the previous 130,000 KRW to 153,000 KRW.

Researcher Chaesangwook of Hana Financial Investment analyzed, "Hanssem's provisional Q2 earnings on a consolidated basis showed sales of 517.2 billion KRW, a 26% increase year-on-year, and operating profit of 23 billion KRW, a 172% increase year-on-year." He noted that balanced growth across channels became full-fledged in Q2, with online sales growing from 5.4% year-on-year in Q1 to 35% in Q2, and Rehouse maintaining a high growth rate of 29% in Q2, slightly down from 29.7% in Q1.

Hanssem is classified as a beneficiary stock due to increased furniture consumption driven by more time spent at home caused by the COVID-19 pandemic.

Researcher Chaesangwook stated, "Hanssem can also benefit from the government's strengthened reconstruction regulations," explaining, "During periods when reconstruction regulations were strict in the past, the high growth of Hanssem's kitchen and IK (currently Rehouse) divisions was remarkable, which proves this point."

He added, "There was no trend of easing reconstruction regulations in the recent July 10 real estate policy," and "The increase in aging housing in the future will lead to an expansion of the remodeling market, which is expected to result in earnings growth for Hanssem, the leading company in the interior market."

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