[THE INVESTOR] Hansol Paper will sustain solid momentum, said Hyundai Motor Investment and Securities on Dec. 24 maintaining a “buy” recommendation and 31,000 won (US$27.51) target price.
Its revenue in the fourth quarter on a standalone basis will increase 19.1 percent on-year to 475.8 billion won and operating profit by 1,062.7 percent to 34 billion won, remaining on an earnings upcycle. It has been picking up fast since hitting a low in the fourth quarter last year, said analyst Park Jong-ryeol.
It can offset the strong pulp prices by transferring the costs through diversified product portfolio and dominant presence in the market. Pulp prices will decline and stabilize next year and will bolster the company’s profits from print and special use paper sector, he forecast.
By Hwang You-mee (firstname.lastname@example.org)