[Special Stock] Hanse Industrial Co., Ltd. Falls Over 4% Amid Earnings Uncertainty

Following last year's poor performance, Hanse Industrial, whose profit estimates have been downgraded this year, is showing a decline of over 4% on the 11th.

As of 9:29 a.m. on the day, Hanse Industrial's stock is trading at 13,130 KRW, down 4.79% from the previous trading day.

The day before, Hanse Industrial announced that its operating profit for last year was 141.3 billion KRW, a 16% decrease compared to the previous year. Last year's sales amounted to 1.7978 trillion KRW, an increase of 5.2% year-on-year. In the fourth quarter of last year, operating profit was 15.4 billion KRW, down 44% from the same period the previous year, while consolidated sales were 404.1 billion KRW, up 14% year-on-year. The operating profit margin was 4%, the lowest in the last eight quarters. Hanse Industrial explained, "Operating expenses increased and operating profit decreased due to a rise in non-operating expenses caused by foreign exchange losses from the sharp increase in exchange rates."

The outlook for this year's performance is also negative. Shinhan Investment Corp. said on the day, "Operating profit is expected to decrease in the first quarter of this year as well," adding, "The trend of increasing orders for low-margin products is likely to continue for the time being, making it inevitable to lower profit estimates." They also downgraded the target stock price to 15,000 KRW and the investment opinion to 'Trading Buy (Neutral).' DB Financial Investment also forecasted, "Due to the expansion of domestic and international risks in the U.S. consumer market and competition for low-price orders, uncertainty in performance is increasing, making stock price weakness inevitable."