Samsung Securities on the 19th said Hansol Chemical will gain a share-price growth driver based on strengthened hydrogen peroxide production capacity. It kept a Buy rating and raised the target price 31.5% to 420,000 won from 270,000 won. The previous day's closing price was 319,500 won.
Hansol Chemical's revenue in the first quarter this year was 231.9 billion won, with operating profit of 44.4 billion won. Samsung Securities said Hansol Chemical's revenue met expectations, but operating profit fell 8.5% below the market consensus as higher oil prices drove up materials and supplies and shipping costs and as quantum dot (QD) materials remained weak.
Samsung Securities expected Hansol Chemical's profitability to return to normal levels starting in the second quarter this year.
Lee Jong-uk, a Hansol Chemical researcher, said, "Sales to semiconductors such as hydrogen peroxide and precursors grew and profitability was solid, and sales of battery binders are returning to normal levels," and noted, "Price increases for materials and supplies due to higher oil prices will be reflected in selling prices starting in the second quarter this year."
The researcher said, "In step with the completion of new plants by Samsung Electronics and SK hynix, Hansol Chemical's hydrogen peroxide production capacity will also be expanded by 25%," and projected, "A growth narrative running through 2028 will provide additional share-price growth drivers."