[Click eStock] "Hansol Paper, Stock Price Slow to Reflect Strong Earnings"

Hyundai Motor Securities Issues 'Buy' Investment Opinion and Sets Target Price at 25,000 Won... Closing Price on 28th at 14,550 Won

[Asia Economy Reporter Kum Boryeong] Despite solid performance, Hansol Paper's stock price is reflecting this progress slowly, according to an analysis.

On the 29th, Hyundai Motor Securities reported that Hansol Paper's Q2 earnings recorded an operating profit of 35.5 billion KRW and sales of 358 billion KRW on a separate basis. Operating profit increased by 59.1% year-on-year, while sales decreased by 4.8%.

The Q2 performance showed a favorable trend. In particular, the industrial paper segment drove the overall operating results. The industrial paper division played a key role in increasing overall operating profit through market share expansion due to the production halt of Sinpung Paper, increased parcel volumes caused by COVID-19 (increased demand for confectionery and food boxes), and the stabilization of downward paper prices.

Park Jongryeol, a researcher at Hyundai Motor Securities, stated, "Due to the prolonged COVID-19 pandemic, we expect the operating performance of the printing paper and specialty paper segments to slow down in the second half of the year. The industrial paper segment is expected to maintain solid growth in the second half without significant impact." He added, "We are revising downward the export volumes of printing and specialty papers more conservatively than initially forecasted. At the same time, the operating profit margins of these two segments are also being adjusted downward considering fixed cost burdens due to reduced scale. Of course, if COVID-19 eases, there is a strong possibility that demand recovery and profitability will rapidly improve with the reopening of economies in Europe and the United States."

Park further commented, "The solid performance momentum is expected to continue in the second half. Although the results of printing and specialty papers will slightly decline, industrial paper is expected to firmly support the overall performance."

Hyundai Motor Securities gave Hansol Paper a 'Buy' investment rating with a target price of 25,000 KRW. The closing price on the 28th was 14,550 KRW. Researcher Park analyzed, "Despite solid performance, the stock price reflection is progressing very slowly because institutional and foreign investors have been net sellers since early May. There is sufficient potential for stock price revaluation based on the solid performance."

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