[Featured Stock] Hansae Co., Ltd. Rises 6.6% Intraday on Strong Earnings Expectations

[Asia Economy Reporter Minji Lee] Hanse Industrial is showing a sharp rise amid expectations that its performance will significantly improve this year.

As of 2:47 PM on the 13th, Hanse Industrial is trading at 24,150 KRW, up 6.62% from the previous trading day. The anticipation of strong fourth-quarter results last year and forecasts of steady performance this year are believed to have expanded investor sentiment.

According to Meritz Securities, Hanse Industrial is expected to record a net profit of 21 billion KRW in the fourth quarter, representing a 116% growth compared to the same period last year. This is attributed to the fixed cost leverage effect resulting from the normalization of production in Vietnam. The company is also expected to continue its performance growth this year, mainly driven by the US segment. Hanuri, a researcher at Meritz Securities, explained, “The US sales proportion is 85%, which is higher than competitors. The US retail apparel inventory ratio is 1.7 (compared to the average of over 2.0), which is even lower than during the global financial crisis, so benefits are expected.”