[Click eStock] "Hanssem, Full-Scale Growth Story Starts... Target Price Up"

[Asia Economy Reporter Park Ji-hwan] NH Investment & Securities maintained a 'Buy' rating on Hanssem on the 7th, stating that the company will write a full-fledged growth story this year, and raised the target price by 4.48% from the previous 134,000 KRW to 140,000 KRW.

Lee Min-jae, a researcher at NH Investment & Securities, said, "The first-quarter earnings are expected to meet consensus due to the external growth of the Rehaus and Kitchenbach divisions and the expansion of online sales caused by COVID-19," adding, "Based on this year's earnings, the price-to-earnings ratio (PER) is at about 17 times, securing valuation attractiveness." Hanssem's consolidated first-quarter sales are expected to increase by 7% year-on-year to 526.1 billion KRW, and operating profit by 50% to 25.8 billion KRW.

Performance growth is expected to continue throughout the year. This year, external growth will continue through the expansion strategy of Rehaus and Kitchenbach dealerships, and performance improvement is expected to be accompanied by a reduction in losses from the Chinese subsidiary.

Lee said, "We plan to absorb the increasing remodeling demand through aggressive offline store expansion and marketing personnel increase strategies," adding, "The number of Rehaus dealerships will expand from about 500 in December last year to over 550, and we plan to increase package sales turnover through a strategy to expand direct construction personnel."

He added, "Sales in the Rehaus and Kitchenbach divisions are expected to increase by 25% from last year to 992.9 billion KRW this year," and "Sales growth in direct stores and online sectors within the furniture division will continue, but B2B sales are expected to decline due to a decrease in domestic apartment move-in volumes."