[Feature Stock] "Hansae Target Price Lowered Due to Weak Sales"

Daishin Securities announced on April 13 that it is maintaining its "Buy" investment rating on Hansae Co., Ltd., while lowering its target price to 14,000 won.

Yoo Jeonghyun, a researcher at Daishin Securities, stated, "We have lowered our target price in line with the downward adjustment of earnings forecasts." She projected first-quarter sales and operating profit for this year at 462.5 billion won and 20 billion won, respectively. In terms of the Korean won, this represents a 1% decrease year-on-year, while in US dollar terms, it reflects a 2% decline. She explained that although the company narrowed the gap through mix improvement focused on high-priced products, sales to low-priced mass retailers declined, resulting in higher order unit prices but an even greater decrease in overall volume. As a result, despite the rise in exchange rates, there was no improvement in operating margin due to the lack of sales growth.

She forecasted a 10% year-on-year sales growth rate for the second quarter. However, she noted that since the second quarter of last year saw very weak results due to tariff impacts, it is possible that rising raw material prices from the Middle East war could add to cost pressures.

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