[Click e Stocks] Hansol Paper, Performance Normalization '~ING'

[Asia Economy Reporter Junho Hwang] On the 26th, KB Securities raised the target price of Hansol Paper to 22,000 KRW, a 15% increase from the previous estimate. They are minimizing the impact of external factors such as pulp prices, maritime freight, and exchange rates through price increases and expanding the domestic sales ratio, and actively pursuing eco-friendly and functional new material businesses, which is expected to lead to gradual revaluation.

Hansol Paper's sales in the second quarter of this year were 412.4 billion KRW, an 18.1% increase compared to the previous year. Operating profit was 18 billion KRW, a 46.3% decrease from last year. The poor performance was attributed to the deterioration in the printing paper sector due to the sharp rise in maritime freight costs.

However, Hansol Paper raised domestic prices by 10% in the second quarter following the first quarter and expanded the proportion of domestic sales. Additionally, the core industrial paper division is expected to enter the peak season from the third quarter, with a 9% price increase implemented in mid-last month and a full-scale performance normalization due to increased production volume following the completion of speed-up investments.

KB Securities forecasted that with performance normalization in the second half of the year, sales will reach 1.67 trillion KRW and operating profit 98.9 billion KRW this year, and sales of 1.74 trillion KRW and operating profit of 123 billion KRW in 2022.

Seong Hyun-dong, a researcher at KB Securities, stated, "Attention should also be paid to Hansol Paper's eco-friendly and functional new material businesses," adding, "Protego began supplying export packaging materials to domestic mask pack manufacturers in April, and Terravas has achieved results such as entering Baemin Sanghoe in March and forming a strategic partnership with Ediya Coffee in June to provide eco-friendly containers."

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