[Click eStock] "Hanssem, Stock Price Movement Linked to Housing Transaction Volume"

Shinhan Investment Corp. on the 25th forecasted that Hanssem's direct construction package sales will increase following the recovery of housing transaction volume, and expected the stock price to move in line with housing transaction volume. No investment opinion or target price was provided.

Seonmi Kim, a researcher at Shinhan Investment Corp., said, "Hanssem's stock price rose 17.4% after the Q2 earnings announcement this year," adding, "Sales of the Rehouse direct construction package (2 to 3 times the sales compared to existing single items or partial repairs) increased by 64% compared to Q1, raising expectations for improved performance in the second half of the year." The surprise dividend announcement also influenced the stock price increase.

There is an opinion that rapid sales recovery is expected due to the increase in housing transaction volume. Researcher Kim explained, "Considering the recovery of housing mortgage loans and the housing purchase preference index, which have been increasing since April, housing transaction volume is likely to continue its upward trend in the second half of the year," adding, "Hanssem changed its agency operation policy at the beginning of the year to focus on boosting direct construction package sales. Although this caused a reduction in the number of agencies and poor Q1 performance, it is expected to show positive effects through rapid sales recovery when housing transaction volume increases."

Q3 performance is expected to show a similar trend to Q2. Researcher Kim said, "The main variable for Q3 performance is costs," adding, "It is encouraging that one-time costs and marketing expenses, which surged since last year after the new CEO's appointment, are expected to decrease. Although there is a high possibility of fluctuations, if the current trend continues, a performance flow similar to Q2 can be expected."

In the short term, the stock price is expected to move according to housing transaction volume. Researcher Kim explained, "In the short term, the key determinant of the stock price will be the strength of the housing transaction volume recovery," adding, "As a leading B2C (business-to-consumer) building materials company, the benefit from the housing transaction volume recovery is the most direct and significant."

For a valuation premium similar to the past, results from mid- to long-term strategic changes must appear. Researcher Kim stated, "For stock price increases and valuation premiums unrelated to the business environment, as in the past, to resume, it is necessary to visualize the results of digital transformation (D/T), improve the efficiency of integrated sales channels, secure price competitiveness of direct construction packages based on economies of scale, and expand market share accordingly," adding, "These will be the key points to watch for Hanssem next year."

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