[Click eStock] "Hana Materials, Surprise Earnings Streak Continues"

[Asia Economy Reporter Ji-hwan Park] Samsung Securities evaluated that Hana Materials has been repeatedly posting surprising earnings. They maintained a 'Buy' investment rating and a target price of 68,000 KRW.

Hana Materials' Q3 performance showed sales of 72.7 billion KRW and operating profit of 22.4 billion KRW, representing increases of 49% and 80% year-over-year, respectively. Hyun-ki Bae, a researcher at Samsung Securities, stated, "The cause of sales growth was influenced by the favorable silicon parts market, SiC ring sales exceeding expectations, and strong expansion of sales to US equipment companies."

In particular, the silicon parts segment itself showed growth exceeding expectations by more than 10% compared to the previous quarter. Sales expansion of silicon parts to US equipment companies began from the third quarter. In Q3, sales to new customers reached 2 billion KRW, and SiC ring sales were around 3 billion KRW, increasing compared to the previous quarter, which is evaluated as proof of changed fundamentals.

The possibility of profit erosion due to recently surged raw material costs is expected to be limited. Researcher Bae predicted, "First, the proportion of raw material costs relative to sales is at the low teens percentage, and since long-term contracts of 2-3 years are mostly signed, the impact will not be significant."