Samsung Securities evaluated on May 19 that Hansol Chemical's long-term growth visibility is improving, driven by the expansion of hydrogen peroxide production and growth in precursor sales. As a result, the firm raised its target price by 31.5% to 420,000 won while maintaining a 'buy' rating.
Lee Jong-wook, a researcher at Samsung Securities, stated in a report that the 25% increase in hydrogen peroxide capacity will provide additional growth momentum for the stock through 2028.
He also noted, "We are adjusting our operating profit estimates for this year and 2027 upward by 1% and 21%, respectively," adding that profits from precursors, particularly trisilylamine (TSA), are expected to grow by 31% this year and 18% in 2027, driving overall profit growth.
Furthermore, he remarked that recovery is beginning to show in previously sluggish applications such as battery binders and tape.
In the first quarter of this year, the company reported sales of 231.9 billion won, an 11% increase from the previous year, while operating profit rose 7% to 44.4 billion won. Although sales met expectations, operating profit fell short of consensus by 8.5% due to rising raw material and transportation costs linked to oil price increases, as well as underperformance in quantum dot (QD) materials.
However, Lee pointed out that the company's semiconductor-related sales and profitability from hydrogen peroxide and precursors remain robust, and sales of battery binders are returning to normal levels. He anticipates that the increase in raw material costs due to rising oil prices will be passed on to consumers starting in the second quarter, leading to a recovery in profitability to normal levels thereafter.
* This article has been translated by AI.
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