NH Investment & Securities said on the 20th that Hansol Holdings is in an extremely undervalued state with a 64% discount to net asset value (NAV), but that consolidated results will improve significantly as Hansol Technics and Hansol Logistics grow alongside Hansol Paper. It did not provide a target price or investment opinion. Hansol Holdings closed the previous trading day at 3,305 won.
Hansol Holdings is the pure holding company of Hansol Group, and its main revenue sources are brand royalties (0.28% of sales) received from affiliates, advisory fees, and dividends.
Baek Jun-gi, an analyst at NH Investment & Securities, said, "Hansol Holdings' policy of raising dividends is clear," adding, "With dividends of 120 won last year, it recorded a dividend yield of more than 5%, and dividends per share will continue to rise."
Hansol Paper, an equity-method subsidiary, is also seeing an improvement in industry conditions. Baek said, "With the World Cup and other sporting events this year, industry conditions will improve," adding, "Growth in the logistics business scale of consolidated subsidiary Hansol Logistics is also encouraging." Hansol PNS, incorporated as a 100% subsidiary, is expanding its base beyond the group's system integration (SI) business into smart factories and production efficiency, and is expected to contribute to the rise in Hansol Holdings' value.
Baek added, "Across Hansol Group, its business structure is shifting from paper to semiconductor and electronic components, and new businesses such as sludge recycling, solar power, and collaborative robot components are being added."
He went on, "Among KOSPI corporations, its price-to-book ratio (PBR) is 0.2 times, the lowest level," adding, "With solid earnings growth expected at major subsidiaries this year, the undervaluation could be resolved."