Shinhan Investment Corp. noted on the 22nd that for HANSSEM to recover its share price, a recovery in the housing market is necessary. They lowered their investment opinion from 'Buy' to 'Trading Buy' and adjusted the target price down from 70,000 won to 46,000 won. The previous day's closing price for HANSSEM was 43,950 won.
Kim Seon-mi, a researcher at Shinhan Investment Corp., said, "The situation is intertwined with a sluggish housing market, weakened consumer sentiment, and a shift in consumption trends toward platforms. Although strategies such as cost efficiency and expanding the share of second-hand products are yielding results, it is difficult to offset the burden of decreased revenue due to thinning out operations. A recovery in the housing market must precede the recovery of share prices."
HANSSEM recorded sales of 459.4 billion won and an operating profit of 2.3 billion won in the second quarter (April to June) of this year. Researcher Kim noted, "The second quarter results significantly fell short of market expectations," adding that despite cost improvements from expense reduction efforts, the decrease in households moving in and poor housing transaction volumes led to revenue contraction and rising fixed costs due to shrinking operations.
The recovery of the housing market is expected to be key. Researcher Kim mentioned, "Improvement in third-quarter results is anticipated due to a short rainy season and delayed Chuseok holiday, but an increase in housing transactions is necessary for performance stabilization," and predicted that the impact of non-branded businesses in the current situation would limit benefits from increased remodeling demand due to a reduction in new supply.
The 'share buyback' was cited as a short-term variable for share prices. He remarked, "Maintaining high dividends without asset monetization is difficult, so short-term momentum is limited," adding, "The factors affecting short-term share price fluctuations will be whether or not a 'share buyback' occurs."