[Special Stock] Hansol Logistics, Net Profit Soars 8 Times Due to Sharp Rise in Ocean Freight... Revaluation Expected

[Asia Economy Reporter Park Hyungsoo] Hansol Logistics is showing strong performance. The news of improved second-quarter earnings appears to have influenced the stock price.

At 2:36 PM on the 11th, Hansol Logistics was trading at 5,000 KRW, up 24.53% from the previous day.

Hansol Logistics announced that it recorded sales of 173.5 billion KRW and operating profit of 15.3 billion KRW in the second quarter. Compared to the same period last year, sales increased by 43.5% and operating profit rose by 299.2%. Net profit surged by 691.4% to 16.2 billion KRW.

Lee Sangheon, a researcher at Hi Investment & Securities, explained, "Regarding ocean freight rates, after hitting a low point in April last year, they began to rise mainly on North American routes and surged sharply after November," adding, "The upward trend has continued into this year."

He continued, "Shipping companies have maintained conservative container ship operations since the 2008 global financial crisis, and along with port congestion and unstable empty container supply caused by COVID-19, as well as increased demand due to pent-up consumption, ocean freight rates have remained at record-high levels."

Furthermore, he emphasized, "Above all, the third quarter is the peak season with increased ocean cargo volume ahead of major consumption seasons such as Thanksgiving, Black Friday, Singles' Day, and Christmas," adding, "The strength in ocean freight rates is expected to continue for the time being."

He said, "In the fourth quarter of last year, ocean freight rates rose too quickly to be reflected in transportation contracts," and added, "This year, as the increased freight rates can be passed on to shippers, profitability improvement will begin in earnest."

The researcher predicted, "Above all, with revenue growth and profitability improvement accelerating this year due to rising freight rates, valuation will be re-rated," and added, "Growth potential may become visible through regional expansion of the container transportation business."