Daishin Securities Co. said on the 14th that Hansae Co. logged results better than feared as third-quarter orders this year were larger than expected, adding that the industry is passing through the bottom. It raised its target price to 15,000 won from 13,000 won and maintained a buy rating. Hansae Co.'s closing price in the previous trading day was 11,950 won.
In the third quarter of this year, Hansae Co.'s sales rose 2% on-year to 543.4 billion won, and operating profit fell 18% to 37 billion won. Sales in dollar terms were similar to the previous year. Thanks to the exchange rate effect, sales growth in won was 2%.
Yoo Jeong-hyeon of Daishin Securities Co. said, "Contrary to expectations that sales growth would be sluggish as orders would decline due to the tariff impact, the company held up at around the third-quarter level of last year," and added, "There was an effect from improving the mix by focusing on higher-priced products in anticipation that orders would actually decrease due to the tariff impact."
However, as volume fell by about the same rate as the increase in product unit prices, factory utilization declined. Yoo explained, "With the disappearance of the one-off expense related to the Haiti plant that was reflected in the third quarter of last year, the company delivered results above market expectations."
Daishin Securities Co. projected that the share price will continue its upward trend, as earnings estimates are entering a phase of upward revision thanks to favorable exchange-rate conditions and an increase in order value. Yoo said, "However, since the stock has surged in the short term on expectations of the industry passing the bottom, the pace of gains is likely to moderate again."