[Click eStock] "Apartment Sales Decline... Hanssem's Growth Continues"

1Q Operating Profit 25.2 Billion KRW... 47% Increase YoY

[Asia Economy Reporter Minwoo Lee] Hanssem posted strong earnings in the first quarter of this year, surpassing market consensus despite a decline in apartment sales transactions. The increase in Rehouse (remodeling) sales confirmed structural growth.

On the 21st, Ebest Investment & Securities maintained a 'Buy' rating on Hanssem and raised the target price by 6.7% to 160,000 KRW. The closing price the previous day was 107,500 KRW.

Hanssem recorded consolidated sales of 553 billion KRW and operating profit of 25.2 billion KRW in the first quarter of this year. These figures represent increases of 12.3% and 46.8%, respectively, compared to the same period last year. The operating profit exceeded the consensus estimate of 23.8 billion KRW by approximately 5.7%.

Researcher Seryeon Kim of Ebest Investment & Securities explained, "Although the only business indicator for the Rehouse sector, apartment sales transactions, decreased by 20.1% compared to the first quarter of last year, Rehouse sales grew by 21.5% year-on-year, confirming 'structural growth.' This proves numerically that remodeling is done even without moving." Online furniture sales also continued their high growth, increasing by 36.0% year-on-year, about half the growth rate seen in the second half of last year, as expected.

The remodeling market is expected to accelerate standardization and corporatization due to a supply gap in new housing. Hanssem is anticipated to benefit from this trend. Researcher Kim stated, "The basis for the increase in Hanssem's corporate valuation ceiling requires a combination of favorable market conditions, changes in business types, and sales growth rate, and the current situation meets these conditions." He added, "If the past change in business type was furniture, now we are at the starting line where corporatization and standardization are re-emerging in the reform and remodeling market." While last year was a period of increased growth due to base effects and market conditions, this year is expected to highlight Hanssem's unique structural growth through store expansion and workforce reinforcement to secure production capacity.

This content was produced with the assistance of AI translation services.