[Click eStock] "Hansol Chemical, Q3 QD Material Sales Expected to Face Challenges"

[Asia Economy Reporter Hwang Yoon-joo] Cape Investment & Securities on the 16th expected that Hansol Chemical will find it difficult to increase sales of QD (Quantum Dot) materials in the third quarter compared to the previous quarter due to weak TV demand. Accordingly, they maintained a 'Buy' investment rating and a target price of 320,000 KRW.

Park Sung-soon, a researcher at Cape Investment & Securities, stated, "Due to the decline in sales of QD materials and the resurgence of natural gas prices, the operating profit margin is expected to slightly decrease compared to the second quarter."

He added, "We forecast third-quarter sales to increase by 1.4% from the previous quarter to 234 billion KRW, while operating profit is expected to decrease by 1.1% to 59.8 billion KRW."

Researcher Park said, "TSA (hydrogen peroxide, precursor) supply to new customers is expected to begin in earnest from the second half of the year," and "Considering the slowdown in the industry in 2023, new CAPA investments by customers are limited, restricting the increase in new line volumes for semiconductor materials."

He analyzed, "Nevertheless, the trend of volume expansion due to new P3 DRAM volumes, miniaturization transition, and advanced process foundry investments will continue," and "Unless there is an adjustment in the operating rates of semiconductor customers like in 2019, performance growth in 2023 is possible."

He added, "Although there is a new risk of reduced CAPEX by customers in 2023 due to the semiconductor industry slowdown, material stocks will be a stable choice during the industry downturn."