[Click eStock] "Hansae Yes24 Holdings, Stock Price Expected to Rise on Improved Business Outlook"

Daishin Securities maintained a buy rating and a target price of 24,000 KRW for Hanse Industrial on the 27th, stating that the first half of this year marked the bottom of the apparel OEM (Original Equipment Manufacturer) industry, and that the stock price is expected to show a gradual upward trend reflecting recovery expectations in the second half.

Yoo Jeong-hyun, a researcher at Daishin Securities, explained, "Due to inventory reduction by each client and differences in order timing, the point at which orders turn to increase is expected to be in the fourth quarter," adding, "Even without aggressive restocking in a sluggish consumer economy, necessary orders are expected to increasingly concentrate on large vendors."

Hanse Industrial's second-quarter sales are expected to be 458.5 billion KRW, down 25% year-on-year, and operating profit is forecasted to decrease by 27% to 40.4 billion KRW.

Researcher Yoo said, "Due to the base effect from achieving record-high performance in the second quarter of the previous year and ongoing inventory reduction by clients, sales are expected to decrease by 28% year-on-year in dollar terms," adding, "Operating profit margin is also expected to record a high 8.8%, above the historical average, as the cost ratio declines with continued efficiency improvements in local subsidiaries in the second quarter following the first quarter."

He added, "Although a significant drop in sales makes a decline in operating profit inevitable and orders are expected to decrease substantially, the continued improvement in profitability is very positively evaluated," further stating, "Despite unfavorable external macroeconomic conditions, the company is showing structural improvements, and there is a possibility that operating leverage will significantly appear during the upcoming sales recovery phase."

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