[Click e-Stock] "Hansol Chemical: Upgraded Earnings Through 2028... Target Price Raised to 330,000 Won"

"Buy" Recommendation for a Preferred Semiconductor Materials Stock

On January 22, Kiwoom Securities announced that it is raising its performance forecasts for Hansol Chemical from this year through 2028, and is also increasing its target price to reflect mid- to long-term growth driven by higher utilization rates at client companies and expansion of its overseas customer base.

Park Yuak, an analyst at Kiwoom Securities, stated in a report released on the same day that he is maintaining a "Buy" rating on Hansol Chemical and raising the target price from 300,000 won to 330,000 won.

Park explained, "This year, memory companies are expected to significantly expand their DRAM facility investments, and Samsung Electronics' NAND utilization rate is projected to turn upward. In 2027, the completion of SK Hynix's Yongin Plant 1 and Samsung Electronics' Pyeongtaek Plant 5 is expected to further support quarterly earnings growth."

Hansol Chemical's earnings for the fourth quarter of 2025 are projected to fall short of both the company's expectations and market consensus, with sales of 224 billion won (down 3% quarter-on-quarter) and operating profit of 21.4 billion won (down 56% quarter-on-quarter). Park noted, "The decline in operating profit is due to the recognition of large one-off expenses, including special bonuses," and judged, "The lower-than-expected operating margin is unlikely to have a significant impact on the share price in the short term."

Operating profit for the first quarter of this year is expected to surge 139% quarter-on-quarter to 51.1 billion won, continuing the growth trend. Semiconductor hydrogen peroxide sales volume is projected to increase by 2% quarter-on-quarter, driven by higher client utilization rates. Sales of semiconductor precursors to overseas clients such as TSMC and Intel are expected to grow by 6% quarter-on-quarter and by 32% year-on-year. Binder sales for secondary batteries are also forecast to rise by 8% quarter-on-quarter and by 10% year-on-year, as sales to major domestic clients expand.

Additional upside potential for earnings was also mentioned. Park commented, "There is potential for further earnings growth if Hansol Chemical secures additional overseas clients for its secondary battery binders, supplies new gases through Soul Materials, and if Taiflex achieves a turnaround in performance. Given these factors, there is a high possibility that results will exceed our estimates, so we recommend Hansol Chemical as a preferred stock within the semiconductor materials sector."