[Click eStock] Hansol Chemical Expects Record High Performance This Year... Target Price Downgraded

[Asia Economy Reporter Hwang Yoon-joo] DB Financial Investment maintained a 'Buy' rating on Hansol Chemical on the 22nd, stating that the company is expected to achieve a performance rebound this year, but lowered the target price to 320,000 KRW.

Researcher Eo Gyu-jin of DB Financial Investment said, "Hansol Chemical's Q1 2022 results are expected to rebound with sales of 212.9 billion KRW (+20.3% YoY / +2.6% QoQ) and operating profit of 53.6 billion KRW (+2.6% YoY / +50.3% QoQ)."

Researcher Eo explained, "In 2022, demand for hydrogen peroxide and precursors will increase due to the rise in memory shipments, along with QD materials driven by the launch of QD OLED TVs (monitors), and the supply of binders for secondary batteries will continue to grow with the expansion of the electric vehicle market."

He forecasted, "Profitability will improve significantly from the second half of the year when the increase in raw material costs is stably reflected in product prices, and the company's full-year 2022 performance is expected to achieve record highs with sales of 910.3 billion KRW (+18.5%) and operating profit of 228.5 billion KRW (+15.5%)."

He added, "The target price was lowered reflecting the NB latex slump and profitability decline due to rising raw material costs."

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