[Click eStock] "Hana Materials, Stock Price Soars... Investment Appeal Declines"

[Asia Economy Reporter Ji Yeon-jin] BNK Investment & Securities announced on the 2nd that it has raised the target price for Hana Materials to 66,000 KRW due to the recent sharp rise in its stock price, but maintained a 'Hold' investment rating.

Lee Min-hee, a researcher at BNK Investment & Securities, said, "(Hana Materials) recently surged along with relatively stable consumable companies within the industry as investors' interest increased amid macro uncertainties and demand slowdown issues," adding, "As the stock price rose close to previous highs, the investment attractiveness within the industry declined despite solid earnings."

The company recorded sales of 80.4 billion KRW in the first quarter of this year, a 45% increase compared to the same period last year, and operating profit of 24.4 billion KRW, up 55%, generally in line with market expectations.

Sales of silicon carbide rings (SiC Ring), a semiconductor component, grew by 14% year-on-year, continuing the growth trend, and sales to new US customers maintained the previous quarter's level, resulting in solid performance without a seasonal downturn.

This year, sales are expected to increase by 31% year-on-year to 83.6 billion KRW, and operating profit is forecasted to rise by 36% to 25.6 billion KRW.

Meanwhile, BNK Investment & Securities set the target price for Hana Materials at 55,000 KRW on March 11. At that time, the stock price, which was in the low 50,000 KRW range, soared to a 52-week high of 66,500 KRW on the 26th.

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