On the 26th, Korea Securities Finance Corporation noted that it will take time to have confidence in the recovery of the business environment regarding Hanssem, but it positively evaluated efforts in value enhancement such as improving shareholder value. The investment opinion remains "buy" with a target price of 20,000 won. Hanssem's previous closing price was 15,190 won.
Korea Securities Finance Corporation projected Hanssem's fourth-quarter revenue to decrease 2.8% year-on-year to 440.5 billion won, with operating profit expected to drop 10.2% year-on-year to 28.3 billion won. Park Jong-ryul, a researcher at Korea Securities Finance Corporation, said, "With high inflation persisting, real income has stagnated, and consumer economic downturn continues" and "Factors negatively affecting fashion consumption expenditures are being continuously provided by the increase in overseas travel."
He further projected, "The household consumption capacity is decreasing due to persistent high interest rates and high inflation, making the business environment for next year challenging."
Earlier, on the 7th of last month, Hanssem announced through a value-enhancement disclosure that it would strengthen profitability and expand shareholder returns by pursuing a mid- to long-term growth strategy. The mid- to long-term growth strategy includes strengthening the global competitiveness of the Hanssem brand, expanding the overseas fashion portfolio, and broadening the lifestyle area, including beauty. To expand shareholder returns, the company plans to increase the cash dividend fund to more than 15% of separate operating profit from this year until 2027 and to proceed with the cancellation of treasury stocks worth 22 billion won over the next four years.
Research Institute Park said, "The recent drop in stock prices has increased valuation attractiveness" and "I positively evaluate that the announcement of the corporate value enhancement plan through the promotion of mid- to long-term growth strategy and the expansion of shareholder returns is very positive."
He added, "There is sufficient potential for stock price reassessment through next year's performance recovery."