Hansol Paper is improving systematically and its stocks could be reassessed, said Hyundai Motor Investment and Securities on Feb. 12 maintaining a “buy” recommendation and 29,000 won (US$25.80) target price.
Its fourth-quarter earnings on a standalone basis remained solid as revenue came in at 476.9 billion won and operating profit 19.6 billion won.
Pulp prices have been on a downward spiral recently and will help boost its profits from print paper and special-use papers. Its revenue and operating profit this year will rise 7.6 percent and 14.5 percent respectively from last year to 1.88 trillion won and 138.4 billion won. Annual profit estimates have been slightly lowered reflecting slowdown in global economy, said analyst Park Jong-ryeol.
Having turned to a full production system in October 2018, it now has world’s largest manufacturing capacity of thermal printing paper, and by 2020 will produce an additional 100,000 ton, added the analyst.
By Hwang You-mee (firstname.lastname@example.org)