[Click eStock] Hansol Chemical to Run in Second Half... Target Price Up

[Asia Economy Reporter Lee Seon-ae] Cape Investment & Securities announced on the 14th that it maintains a buy rating on Hansol Chemical and raises the target price to 300,000 KRW. This target price was calculated by applying a price-to-earnings ratio (PER) of 20 times to the 12-month forward earnings per share (EPS) based on the revised upward earnings estimates. A PER of 20 times corresponds to the upper range of Hansol Chemical's average PER.

Park Seong-soon, a researcher at Cape Investment & Securities, stated, "Considering the growth potential of high value-added businesses such as QD materials and secondary binders, applying a valuation at the high end of the PER band is reasonable." He emphasized, "Semiconductor material stocks are expected to show the strongest performance in the second half of the year, so considering both earnings momentum and valuation, the recent price correction should be viewed as a buying opportunity."

Meanwhile, Hansol Chemical's first-quarter results met market expectations. Both sales and operating profit reached record highs. Due to Samsung Electronics' investment, sales of semiconductor materials such as hydrogen peroxide and precursors increased compared to the previous quarter. NB latex also recorded a significant increase in sales compared to the previous year.