[Click eStock] "Hanssem, Strengthened Social Distancing Again... Top Preferred Stock in Building Materials"

[Asia Economy Reporter Oh Ju-yeon] NH Investment & Securities stated that the social distancing Level 2, which began due to the increase in confirmed cases of the novel coronavirus infection (COVID-19), will increase the time spent at home and lead to investments in the residential environment. They presented Hanssem as the top preferred stock in the building materials sector, maintaining a 'Buy' investment rating and a target price of 120,000 KRW.

According to NH Investment & Securities on the 21st, following the social distancing Level 2 in March, interest in interior design increased, resulting in a 21% year-on-year rise in sales in the interior furniture sector in the second quarter (15% at dealerships, 16% at flagship stores, 31% online).

Researcher Min-jae Lee mentioned, "In August, confirmed COVID-19 cases increased again, and social distancing Level 2 is being implemented," adding, "The suspension of high-risk facility operations, expansion of remote work, increased time spent at home, difficult domestic and international travel, and rising real estate prices are factors that increase investment in the residential environment."

Accordingly, sales in the interior furniture sector in the third quarter are estimated to increase by 17% year-on-year (18% at dealerships, 12% at flagship stores, 25% online).

Among real estate measures, stringent regulations on reconstruction are expected to lead to remodeling. This environment is analyzed as positive for Hanssem.

NH Investment & Securities forecasts that Hanssem's consolidated sales this year will be 2 trillion KRW, and operating profit will be 90 billion KRW, increasing by 17% and 62% respectively compared to the same period last year. Additionally, for 2021 on a consolidated basis, sales are expected to be 2.1 trillion KRW and operating profit 128.6 billion KRW, representing increases of 4% and 43% year-on-year, respectively.