[Click eStock] "Hanssem, Rapid Progress in Profit Normalization... Target Price Up"

Yuanta Securities raised the target price for Hanssem from 48,000 KRW to 54,000 KRW on the 7th. However, the investment rating was maintained at 'Neutral (HOLD)'.

Hanssem recorded provisional consolidated sales of 514.8 billion KRW and an operating profit of 1.2 billion KRW in the second quarter. Compared to the same period last year, sales increased by 3%, but operating profit sharply declined by 43.2%. Nevertheless, it significantly exceeded market expectations of a loss and succeeded in returning to profitability.

On the 1st, Kim Yujin was appointed as the new CEO of Hanssem. In his inaugural speech, CEO Kim mentioned strategic execution plans such as "avoiding blind sales growth," "building a business structure capable of sales growth and profitability improvement from a long-term perspective," and "improving efficiency." Yuanta Securities expects that with this change in CEO, Hanssem will continue a profitability-focused business strategy.

Kim Giryong, a researcher at Yuanta Securities, said, "Excluding the seasonal effect this quarter, it is difficult to assign great significance to the normalization of profits and the return to profitability," but added, "However, depending on the strategic direction of the new CEO, the speed of profit normalization could proceed faster than expected, and the recent favorable stock price trend is judged to have partially reflected these expectations."

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