[Click eStock] "Hanssem, Rehouse Channel Maintains Strong Growth...Solid Performance Despite Cost Burden"

[Asia Economy Reporter Park Ji-hwan] Yuanta Securities maintained a 'Buy' rating and a target price of 160,000 KRW on Hanssem on the 26th, stating that strong earnings continue as concerns over cost burdens have been alleviated.

Kim Ki-ryong, a researcher at Yuanta Securities, said, "Hanssem's consolidated preliminary results for the second quarter of this year recorded strong earnings with sales of 568.7 billion KRW and operating profit of 27.6 billion KRW, representing increases of 9.6% and 22.0% year-on-year, respectively." He analyzed that high growth centered on Rehaus continued, and both online and offline channels also maintained a sales improvement trend compared to the same period last year.

The strong operating profit this quarter is attributed to cost reduction effects in other raw and subsidiary materials and strengthened profit and loss management factors continuing from June, despite the rise in PB (Particle Board) prices, a wood raw material used in furniture manufacturing. China's performance achieved breakeven for the second consecutive quarter, contributing to improved operating profit compared to the same period last year.

High growth centered on the Rehaus channel was particularly notable. Researcher Kim Ki-ryong said, "We expect continued effects from increased package sales, direct construction packages, new openings of standard stores, and growth in Rehaus dealerships." He added, "This quarter, direct construction packages exceeded 2,000 cases for the first time, contributing to an increase in package prices."

In the second half of the year, the effects of new standard store openings, increased Rehaus dealerships, and traffic growth through mart entries are expected to become more concrete.

Researcher Kim stated, "Although there is a persistent possibility of increased stock price volatility due to the major shareholder's stake sale and related processes, considering the current growth trend centered on Rehaus after a stabilization period, the possibility of damage to the company's B2C competitiveness due to changes in major shareholders is limited." He emphasized that, along with the expansion of influence and earnings growth in the interior and remodeling market, the buy strategy remains valid.

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