[Click eStock] "Hanssem Benefits from Housing Transaction Volume Recovery... Target Price Maintained"

Shinhan Investment Corp. maintained a buy rating and a target price of 78,000 KRW on Hanssem on the 19th, stating it is "the only company expected to benefit from the recovery in housing transaction volume."

On the same day, Kim Sun-mi, a researcher at Shinhan Investment Corp., said, "Valuation pressure can be offset by upward earnings forecasts and the possibility of utilizing treasury shares (29.5%). We recommend it as the top pick in the sector."

For the second quarter of this year, consolidated sales are expected to be 502.1 billion KRW, and operating profit is expected to be 13.6 billion KRW, which is likely to fall short of market expectations based on operating profit. While solid performance continues in the business-to-business (B2B) and home furnishing segments, the remodeling segment showed weak results.

Regarding this, researcher Kim said, "It is interpreted as a timing issue. Housing transaction volume centered in Seoul is recovering, and consumer price sensitivity has increased due to higher housing prices," adding, "As a result, the extended timing gap between housing transactions and remodeling is the cause." She further stated, "From next year onward, the recovery trend in housing transaction volume is expected to continue due to reduced housing supply, rising jeonse prices, lower mortgage loan interest rates, and government deregulation."

Researcher Kim explained, "As we move into the second half of the year, if the recovery in housing transaction volume strengthens due to interest rate cuts, deregulation, and supply shortages, the remodeling segment's performance will increase," adding, "In fact, remodeling division performance has improved compared to the previous month since the beginning of this month. Unlike other companies with a large proportion of B2B performance, Hanssem's business-to-consumer (B2C) segment accounts for 75%, and B2C profitability is higher than B2B."