[Click eStock] "Hansome, Positive Expectations for This Year Remain"

Shinhan Financial Investment Presents 'Buy' Investment Opinion and Target Price of 41,000 Won... Closing Price on 11th is 30,000 Won

At Home Service by Hansome (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has been raised that the expectations for Hansome remain valid this year.

On the 12th, Shinhan Financial Investment gave Hansome a 'Buy' rating with a target price of 41,000 KRW. The previous day's closing price was 30,000 KRW.

Hansome's consolidated operating profit for Q4 last year is estimated at 32.7 billion KRW, a 1.9% decrease compared to the same period last year. Heejin Park, a researcher at Shinhan Financial Investment, explained, "The somewhat sluggish performance compared to previous estimates is mainly due to the impact of the social distancing level increase reflected since mid-November last year and the initial cost increase due to the expansion of new online channels."

Although the Q4 results last year were disappointing, Park's analysis suggests that expectations for this year remain strong. He said, "As confirmed in the trend until early October to November last year, the expectation for reflecting deferred demand is valid. The fact that the impact of COVID-19 has been fully reflected since February last year also raises expectations for a base effect. As the channel expansion of group affiliates continued from June to the following month last year, the growth momentum from channel expansion is also valid. A new cosmetics brand will be launched from the second half of this year. Although it is still difficult to mention specific figures, the expectation for the direction is valid."

Shinhan Financial Investment expects Hansome's sales and operating profit this year to increase by 4.1% and 19.2%, respectively, compared to the previous year.

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