[Asia Economy Reporter Park Jihwan] Ebest Investment & Securities maintained a 'Buy' rating on Hansae Co., Ltd. on the 24th, expecting third-quarter results to exceed market expectations this year, and raised the target price by 38.9% from the previous 18,000 KRW to 25,000 KRW.
Researcher Jeong Soyeon of Ebest Investment & Securities stated, "Hansae's second-quarter sales are expected to grow 5.6% year-on-year to 637.3 billion KRW, and operating profit is forecasted to increase 16.5% to 45.5 billion KRW, surpassing consensus estimates."
Researcher Jeong added, "Sales in the OEM manufacturing sector are expected to grow 14.9% year-on-year to 581.4 billion KRW," and "PPE sales such as masks and protective clothing are estimated at 100 million USD, similar to the second quarter, offsetting weak apparel sales and performing better compared to peers."
However, "Subsidiary Hansae MK's sales are projected to decrease 16.1% to 55.9 billion KRW, with an operating loss of 1.6 billion KRW," and "The recovery of the Chinese subsidiary has been slow, and sales weakness due to the second wave of COVID-19 in Korea is believed to have continued," she explained.
Researcher Jeong concluded, "The sluggish apparel OEM orders caused by COVID-19 are expected to improve gradually in the second half of this year and the first half of next year," and "Since PPE sales are expected to continue, sales diversification is anticipated."
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