KB Securities analyzed on the 28th that amid poor market conditions and a slower-than-expected improvement in profitability for HANSSEM, improving the cost rate is crucial for future performance recovery. Consequently, it lowered the target stock price from the previous 72,500 won to 50,000 won and downgraded the investment opinion to 'neutral.' The closing price of HANSSEM on the last trading day was 43,800 won.
KB Securities forecasts that this year HANSSEM's revenue and operating profit will increase by 1.1% and 33.8%, respectively, compared to the previous year, reaching 1.93 trillion won and 4.17 billion won. With a decrease in business-to-business (B2B) transactions and an increase in business-to-consumer (B2C) sales offsetting each other, improving the cost rate is vital.
Jang Mun-jun, a researcher at KB Securities, noted, "With the occupancy of large complexes like Olympic Park Foreon, we can anticipate a potential sales strength in the B2C interior sector."
KB Securities highlighted the importance of a high-dividend strategy based on estimable profits. Last year, the dividends per share for HANSSEM were 8,530 won. This included one-time gains from the sale of the company building, and the dividend payout ratio was around 94%. In 2022 and 2023, dividends were issued despite losses.
Jang noted, "While a high-dividend policy has been implemented alongside quarterly dividends, the stock price is not responding," explaining, "Securing a basis for estimable ordinary profits seems to be important."
Considering the currently subdued consumer sentiment and rising housing prices, it is not easy to expect the kind of simultaneous growth in size and profits that was a major driver during previous stock price increase periods. Jang highlighted, "The key is whether the sales mix changes with a focus on high-profit remodeling items (kitchens, bathrooms) amid limited growth in size, and there is also a need for profit stability and a predictable dividends policy to be linked."
He added, "Considering the general uncertainties, there is not much potential for short-term stock price increases," and stated, "The potential for an increase based on the target stock price is only 13.6%, which led me to downgrade the investment opinion to 'neutral.'"