April 24, 2024

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[THE INVESTOR] Hanssem’s third-quarter earnings will be well below market expectations, said Hanwha Investment and Securities on Oct. 11 downgrading the recommendation to a “hold” from a “buy” and lowering the target price to 64,000 won (US$56.13) from 150,000 won. 

Its revenue in the period will fall 8.9 percent on-year to 506.4 billion won and operating profit 60.2 percent to 15.8 billion won. Sales across sectors except for B2B have been slow, especially in interior decoration and kitchen divisions, said analyst Song Yu-rim.

Its long-term growth potential remains positive, including expansion in domestic renovation market share and sales in China. However, the firm will first have to deal with significant underperformance in the second half and sliding stock price that is yet to bottom out, she pointed out. 

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