[Click eStock] "Hansae Yes24 Holdings, 1Q 'Earnings Surprise' Followed by Strong 2Q Performance Expected"

[Asia Economy Reporter Kwon Jae-hee] Eugene Investment & Securities on the 17th issued a 'Buy' rating and a target price of 34,000 KRW for Hanse Industrial.

Hanse Industrial's Q1 performance this year recorded consolidated sales of 581.2 billion KRW and operating profit of 49 billion KRW. This represents an increase of 54.7% and 66.1% respectively compared to the same period last year, marking an 'earnings surprise' that exceeded market expectations.

Notably, the positive aspect of the Q1 results is that since Q4 last year, the main production facilities have been operating normally and the US logistics network has recovered, leading to record-high sales and continued profitability improvement.

Researcher Park Jong-sun of Eugene Investment & Securities analyzed, "Despite cost increase factors such as a sharp rise in cotton prices due to the economic downturn and inflation caused by COVID-19, profitability improved along with sales growth by focusing on orders based on profit margins."

Hanse Industrial is expected to continue its growth trend in Q2 as well. Eugene Investment & Securities estimated Hanse Industrial's Q2 sales at 473.8 billion KRW and operating profit at 38.1 billion KRW, which are increases of 15.2% and 23.8% respectively compared to the same period last year.

Researcher Park said, "Hanse Industrial is expected to improve profitability through expanding its product lineup to include high-priced products in addition to its main products. Also, its proprietary smart factory system, HAMS (Hanse Advanced Manufacturing System), is expected to contribute to cost reduction through productivity improvement and energy efficiency, as well as to improving the profit structure."

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