HANA Materials, a KOSDAQ-listed company, experienced a weak stock price at the start of trading on the 21st. This decline is interpreted as a result of worsened investor sentiment due to securities firms' forecasts indicating that earnings and stock price upward potential are limited.
As of 9:59 a.m. on that day, HANA Materials is trading at 26,900 won, down 2,450 won (8.35%) compared to the previous trading day.
On that day, BNK Investment & Securities lowered its target stock price for HANA Materials from the previous 48,000 won to 33,000 won, and adjusted its investment opinion from 'buy' to 'hold.'
In the first quarter of this year, HANA Materials recorded sales of 58.6 billion won and operating profit of 8.7 billion won, which represents increases of 15% and 43%, respectively, compared to the previous year, though these figures fell short of market expectations by 3% and 18%.
BNK Investment & Securities analyzed that HANA Materials' annual performance this year is likely to remain at last year's level or decrease slightly. Lee Min-hee, a researcher at BNK Investment & Securities, noted, 'Considering that demand for NAND is weak, it seems that continued production cuts are necessary, and not only will new investments be delayed, but also transition investments may also enter a phase of speed control.'
Additionally, the researcher stated, 'Recent demand improvement for HANA Materials is temporary, and considering the expected decline in final demand in the second half due to mutual tariff effects, the potential for both earnings and stock prices to rise is small.'