[THE INVESTOR] Hansol Chemical’s third-quarter earnings will be a record high, said eBEST Investment and Securities on Aug. 24, maintaining a “buy” recommendation and raising the target price to 110,000 won (US$97.72) from 100,000 won.
Its revenue in the period will rise 9.2 percent on-year to 147.7 billion won and operating profit by 35 percent to 31.7 billion won. It will be boosted by steady increase in sales of hydrogen peroxide for semiconductors, following the increase in Samsung Electronics expanding memory business. Yearly earnings will also be the highest ever, with 566.6 billion won revenue and 104 billion won operating profit, up 8.5 percent and 31.4 percent respectively. When its major clients, including Samsung and SK hynix, build up manufacturing capacity to keep up with the booming industry, supply of hydrogen peroxide will increase accordingly, said analyst Eo Gyu-jin.
Hansol Chemical invested 75 billion won for a 30 percent increase in its own manufacturing capacity in February. When the new facility starts full operations by early 2019, it will grow steadily on the back of hydrogen peroxide, added the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)