[Click e-Stock] "Hansae's Share Price Momentum Limited... Target Price Lowered"

First-Quarter Operating Profit Falls Short of Expectations

Hanwha Investment & Securities has revised its target price for Hansae Co., Ltd. downward from 15,000 won to 12,000 won, stating that share price momentum is expected to remain limited for the time being. The investment opinion remains at 'buy'.

According to Hanwha Investment & Securities on May 20, this target price revision is due to the lowering of its earnings forecasts. The brokerage projects that Hansae Co., Ltd. will record second-quarter sales of 531 billion won and operating profit of 18.5 billion won, up 11.8% and 50.1%, respectively, year-on-year.

Jinhyup Lee, an analyst at Hanwha Investment & Securities, commented, "Since the second quarter of last year, the impact of tariffs has become fully apparent. As a result, the base effect of tariff-related price burden will also level out from the second quarter." He added, "While the OEM sector remains sluggish, the worst phase has passed."

He further emphasized, "Share price momentum will be limited for now," and continued, "To see a rebound in the share price, there needs to be either a meaningful recovery in the OEM industry or confirmation of growth potential from the commencement of operations at the Guatemala subsidiary."

Previously disclosed first-quarter results showed sales of 467.2 billion won and operating profit of 10.5 billion won. In particular, operating profit fell 48.5% year-on-year, significantly missing the market consensus of 20 billion won. Lee explained, "OEM sales in dollar terms declined by 2.9%," and added, "With investment costs related to the Guatemala subsidiary scheduled to begin operations from the third quarter, there is an increasing cost burden."

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