[Click eStock] "Hanssem, Home Decorating Trend Continues... Target Price Up 16%"

Eugene Investment & Securities Report

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities maintained a buy rating on Hanssem on the 6th and raised the target price by 16.7% from the previous level to 140,000 KRW. This is based on the judgment that the company can benefit from the ongoing home decoration trend.

Hanssem's fourth-quarter sales are estimated at 534.3 billion KRW, and operating profit at 27.8 billion KRW, representing increases of 23% and 28.2% respectively compared to the same period last year. Researcher Kim Yeolmae of Eugene Investment & Securities explained, “With the strengthening home decoration trend and an increase in housing transactions in the second half, strong performance is expected following the third quarter. Rehouse interior sales are rising both in the number of construction projects and the unit price per project.”

As the proportion of direct construction by Rehouse increases, sales per store are also growing. Given that people are spending more time at home due to COVID-19, strong sales are expected for kitchens and bathrooms that can be constructed within a week.

In a situation where new houses are scarce and aging houses are increasing, interest in one’s own home is shifting toward interior remodeling. Houses built during the 2 million housing construction period from the late 1980s to early 1990s require reconstruction, but personal remodeling demand, which takes relatively less time, is inevitably increasing continuously.

The trend of homeowners increasing actual residence to reduce various taxes and maintain eligibility as reconstruction association members is also positive. Researcher Kim Yeolmae said, “The market is growing not only in the short term but also in the mid-to-long term for Hanssem,” adding, “Accordingly, Hanssem plans to launch an interior platform similar to ‘Today’s House’ during the first half of the year.”

He continued, “Hanssem is noteworthy as a total interior solution company by expanding Rehouse, which offers total remodeling packages, increasing the proportion of direct construction, and developing and expanding differentiated online and mobile platforms.”

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