Hankook Securities announced on June 24 that it is maintaining its target price of 33,000 won and a "buy" rating for Hanssem, citing continued strong performance momentum.
In a report released that day, analyst Park Jong-ryul projected that Hanssem would achieve second-quarter sales of 363.5 billion won, a 7.5% increase year-over-year, and an operating profit of 10.6 billion won, reflecting a staggering 1,332.2% year-over-year growth.
Park noted that consumer spending on fashion, which had previously been sluggish, is gradually recovering, positively influenced by improved consumer sentiment and asset effects. He added that the robust growth of domestic brands and the expansion of the imported portfolio have led to the stabilization and volume growth of newly launched brands.
He also forecasted that sales growth, particularly from high-end domestic and international brands, along with improvements in key metrics such as regular price sales rates and total sales rates, would enhance the gross profit margin. As a result, the operating profit margin is expected to rise to 2.9%, an increase of 2.7 percentage points compared to the same period last year.
Park positively assessed the company's shareholder return policy, stating, "With a significant turnaround in performance, the expansion of shareholder returns will likely lead to a reevaluation of stock prices this year." He explained that the increase in shareholder returns includes raising the dividend payout ratio to over 15% of separate operating profit, as well as considering additional share buybacks and cancellations.
* This article has been translated by AI.
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