[Featured Stock] Hanssem Chooses Business Structure Improvement Strategy, Up 7%

Hanssem's stock price is on the rise. Expectations that earnings will improve due to margin expansion through business structure improvement seem to be influencing the stock price.

At 10:03 AM on the 19th, Hanssem was trading at 51,200 KRW, up 7.56% from the previous day.

Seungjun Kim, a researcher at Hana Securities, explained, "Hanssem's interior division, Home Remodeling, has decided to focus on the single-item market such as kitchens and bathrooms rather than the package construction that was the main focus in the past. Considering that package construction had a high cost ratio due to labor costs, margin improvement can be expected through expansion of sales in the single-item market."

Researcher Kim added, "The home furnishing division, Home Furnishing, is reducing the proportion of low-priced furniture, daily necessities, and affiliate mall sales with low profitability, and is marketing mid- to high-priced products. This is a strategy to improve margins as much as possible in a sluggish market with weak transaction volume recovery, and when the market improves, a significant profit leverage effect can occur." He also added, "From the first quarter of this year, it will be necessary to monitor through numbers whether this strategic direction is effective."

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