iM Securities projected on September 29 that Hanseum will continue to improve its performance, driven by strong sales of fall and winter (FW) clothing, growth of new overseas brands, and normalization of inventory. The firm maintained a 'Buy' rating and raised its target price from 25,000 won to 28,000 won.
Analyst Jang Ho of iM Securities forecasted Hanseum's third-quarter revenue to reach 332.1 billion won, a 7.3% increase from the same period last year, while operating profit is expected to rise by 271.1% to 9.2 billion won. This operating profit estimate exceeds the recent market consensus of 8.7 billion won.
The improvement in performance is attributed to strong sales of FW clothing and the growth of new brands in the product sector. With lower temperatures in mid-September compared to previous years, sales of high-margin FW products are estimated to have increased by about 10% year-on-year in September.
Growth in overseas fashion brands is also continuing. Since 2022, Hanseum has introduced a total of 12 overseas fashion brands, with cumulative sales from January to August this year up 50% compared to the same period last year. iM Securities expects the product sector's revenue to reach 102.8 billion won in the third quarter, a 14.1% increase, with gross profit projected to rise by 19.5% to 65.1 billion won.
The outlook for long-term profitability is also expanding. Hanseum has been reducing inventory burdens since the end of 2024, with inventory assets down 8% as of the end of June compared to the previous year. As the proportion of sales at regular prices increases, the depreciation of new stores opened between 2022 and 2024 is expected to gradually end this year, alleviating fixed cost burdens.
The expansion of new brands is also seen as a growth driver. In May, Hanseum signed an exclusive contract with SKIMS, which plans to open its flagship store in early 2027 and gradually launch nine department store locations by 2030. The French premium running brand SATISFY and additional overseas brands are also set to launch next year.
Strengthening shareholder returns is another factor enhancing investment appeal. On September 18, Hanseum announced it would increase the dividend payout ratio for 2026-2028 from 15% to 20% of separate operating profit and raise the minimum dividend per share (DPS) from 750 won to 800 won. The company also plans to buy back and retire shares worth 10 billion won annually during the same period.
Analyst Jang noted, "The expected dividend yields for this year and next are 4.2% and 4.9%, respectively, based on the previous day's closing price. Considering the history of exceeding past dividend standards, there is potential for further increases in DPS in the future."
* This article has been translated by AI.
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