[Click eStock] Hansol Chemical, a Comfortable Stock for Mid- to Long-Term Investment

[Asia Economy Reporter Lee Seon-ae] Shinhan Financial Investment announced on the 3rd that it maintains a buy rating and a target price of 350,000 KRW for Hansol Chemical.

Hansol Chemical's third-quarter sales are expected to be 205 billion KRW (+9.5% QoQ, +24.5% YoY), and operating profit is expected to be 61.5 billion KRW (+14.2% QoQ, +19.9% YoY), exceeding the consensus (operating profit 60.1 billion KRW). 1) Increased sales of hydrogen peroxide for semiconductors and displays, 2) start of QD OLED material sales, and 3) sales of anode binders for secondary batteries and subsidiary Taepax are expected to drive performance.

Accordingly, fourth-quarter sales are expected to be 225 billion KRW (+9.7% QoQ, +41.3% YoY), and operating profit is expected to be 58.5 billion KRW (-4.9% QoQ, +118.2% YoY), showing significant improvement compared to the previous year. Considering that one-time expenses such as bonuses usually occur in the fourth quarter, this can be interpreted as a substantial performance improvement.

Recently, Hansol Chemical decided to invest 85 billion KRW in the secondary battery silicon anode material business. In the second half of 2022, Samsung SDI plans to mass-produce automotive batteries equipped with silicon anode materials, and global secondary battery companies are also expected to join. Hansol Chemical is expected to establish itself as a full-fledged secondary battery material company by expanding its business from secondary battery tapes and anode binders to silicon anode materials.

Researcher Soh Hyun-chul of Shinhan Financial Investment emphasized, "We maintain the target price of 350,000 KRW considering the expected operating profit of 226 billion KRW in 2021 (+48.8% YoY) and the formalization of investment in the secondary battery silicon anode material business," adding, "From a mid- to long-term investor's perspective, this is considered a comfortable stock."

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