[Click eStock] "Hansol Chemical, Time to Focus on Upward Earnings... Target Price Up 13%"

[Asia Economy Reporter Park Jihwan] Shinhan Financial Investment maintained a 'Buy' rating on Hansol Chemical on the 2nd, stating that it is time to pay attention to its upward-trending earnings, and raised the target price by 12.9% to 316,000 KRW.

Researcher Soh Hyuncheol of Shinhan Financial Investment said, "An earnings surprise is expected in the first quarter," and forecasted, "Sales are expected to increase by 16.6% year-on-year to 171 billion KRW, and operating profit is expected to rise by 50.7% to 53 billion KRW." He analyzed that this is due to strong sales of semiconductor-grade hydrogen peroxide and precursors, as well as increased sales of NB latex.

According to Shinhan Financial Investment, this year, with the expansion of Samsung Electronics' DRAM P2 line, the expansion of the Xi'an NAND line, and the new operation of SK Hynix's DRAM M16, sales of memory semiconductor-grade hydrogen peroxide and precursors are expected to increase significantly. Sales of materials for Samsung Electronics' foundry and TSMC are also expected to increase substantially. In the second half of the year, Samsung Display's large QD OLED line will begin operation, and QD materials required for this will be supplied.

Researcher Soh stated, "Due to the recent surge in demand for NB latex used in medical gloves, the price per ton has more than doubled, and the strong price trend is expected to continue," adding, "Hansol Chemical plans to expand NB latex production capacity more than threefold, and NB latex sales are expected to increase significantly starting this year."

Due to the strong performance of all business divisions, annual sales are expected to reach 760 billion KRW, a 22.7% increase from last year. Operating profit is projected to rise by 39.7% to 212.3 billion KRW. Researcher Soh emphasized, "Not only is there strong performance across all business divisions, but the effect of NB latex capacity expansion is becoming fully visible, so we believe there is high potential for further upside."

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