April 27, 2024

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[THE INVESTOR] Hanssem will post strong growth in the second half of this year, said KTB Investment and Securities on April 18, raising the target price to 290,000 won (US$254) from 260,000 won. The securities firm maintained a “buy” recommendation and the “most favorable” rating in the construction material industry. 

Its first-quarter earnings will be solid, in line with market expectations, said analyst Kim Seon-mi, noting that despite a slight decline in sales from the existing interior and kitchen stores, online stores and kitchen renovation packages grew between 25 percent and 30 percent on-year, repectively.

More households will relocate in the second half of this year and will push the consumption of furniture and home decorating products, forecast the analyst. 

Dongbu Securities agreed that its earnings remain upbet but said the stock price is overvalued, downgrading its recommendation to a “neutral” from a “buy.”

There is nothing of concern for this year’s revenue from the interior sector as the home renovation products diversify and B2B sales remain strong, said analyst Cho Yun-ho. 

For Hanssem’s valuation to rise further, however, its mid- to long-term growth strategies should be realized, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)