[Click eStock] "Hansae Yes24 Holdings Enters Recovery Phase... Sales Expected to Rebound in Second Half"

Hana Securities maintained its 'Buy' rating and target price of 29,000 KRW for Hanse Industrial on the 29th, stating that "sales are expected to rebound as the company enters a recovery phase this year."

Hanse Industrial's consolidated sales for the fourth quarter of last year decreased by 16% year-on-year to 355.7 billion KRW, while operating profit increased by 190% to 27.3 billion KRW during the same period. The operating profit exceeded the market expectation of 20.1 billion KRW.

Seo Hyun-jung, a researcher at Hana Securities, analyzed, "The sales growth rate in dollar terms declined by 14%, which was due to uncertain U.S. consumer demand leading to only small, short-term orders, delaying the recognition of spring and summer volumes. However, despite the sales decline, the cost ratio fell by 7.1% year-on-year to 81.5%, and selling and administrative expenses decreased by 1%, indicating a continued trend of profitability improvement."

From the second half of this year, the researcher expects a full-scale inventory replenishment cycle to begin, leading to an industry turnaround. He explained, "Orders in the second half are expected to increase by 28% year-on-year, and annual sales growth is projected to rebound by 15%. Although average selling price (ASP) declines and an unfavorable exchange rate environment are anticipated in terms of profitability, the recovery in scale will alleviate fixed cost burdens, helping to defend against profitability deterioration."

He added, "Considering the cyclical nature of the industry, where stock prices tend to rise most sharply when the market turns from a bottom to a recovery phase, a strategy of buying on each correction will be effective."