[Click eStock] "Hansae Yesul, 4Q Rebound Expectations and Potential Dividend Increase"

Meritz Securities maintained a 'Buy' rating on Hanse Industrial and raised the target price from 27,000 KRW to 30,000 KRW on the 5th.

Hanse Industrial's sales for the second quarter of this year are expected to reach 464.9 billion KRW, operating profit 37.7 billion KRW, and net profit 23.6 billion KRW. Sales growth rates in KRW and USD are estimated at -23.9% and -27.0%, respectively, with baseline burdens, volume reduction, and price declines all acting as headwinds. On the profit side, production efficiency improvements are expected to offset the impact of decreased operating rates. Cost management through labor reduction in Vietnam, cost savings from head office personnel adjustments, and a decline in cotton prices are also expected to ease raw material burdens going forward.

Hanuri, a researcher at Meritz Securities, analyzed, "The discount sales strategy combined with increased demand for low-priced products is accelerating inventory depletion, leading to expectations of a sales rebound in the fourth quarter of this year," adding, "The possibility of dividend increases due to the major shareholder's rising stake also provides sufficient incentive to buy."

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