[Click eStock] "Hansae Yes24, Excessive Stock Price Decline... Low Price Buying Strategy"

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities announced on the 16th that it recommends buying Hanse Industrial at a low price, stating that the stock price decline is excessive compared to concerns about performance. The target stock price was set at 29,000 KRW.

Hanuri, a researcher at Meritz Securities, said, "Hanse Industrial has a 12-month forward price-to-earnings ratio (PER) of 5.8 times, which is half that of the latecomer Taiwanese company Makalot. It is true that a red light has been lit for global apparel exports, and economic contraction is worsening consumer sentiment, leading to sluggish front-end sales and inventory burdens. However, structural improvement based on increased vendor market share and expansion of high-priced product proportions is effective." Additionally, the diversification of production sites through additional expansion in Latin America and the operation of a new factory in Myanmar (which exports to the EU duty-free) as well as the expansion of the fabric business are pointed out as attractive investment points.

Hanse Industrial's sales in the second quarter of this year increased by 48.5% year-on-year to 610.6 billion KRW. Operating profit rose 80.5% to 55.6 billion KRW, while net profit decreased by 19% to 24.5 billion KRW. Operating profit exceeded market expectations by 24%. It is analyzed that the increase in product unit prices and exchange rate effects significantly boosted operating profit.

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