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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] LS Securities has adjusted its target price for Hanssem downward following the company’s second-quarter earnings shock. The revised target price reflects a significant reduction in profit estimates due to disappointing financial results.
Hanssem reported second-quarter revenue of 478 billion won and operating income of 7.1 billion won, falling short of market consensus by 5.7% and 50.5%, respectively. The shortfall was primarily attributed to a 4.6 billion won loss related to Tiemef (Tmon·Wemaef) and a decline in B2B sales due to a sluggish housing market since 2021.
LS Securities analyst Kim Se-ryeon noted that the company’s performance was impacted by the Tiemef-related losses and the weak B2B market, which led to lower-than-expected revenue and earnings. The third quarter is anticipated to be a seasonal low, with additional costs of up to 2.5 billion won related to Tiemef risks potentially affecting results.
Despite these challenges, Kim highlighted that Hanssem’s top-line growth will be crucial, particularly if macroeconomic conditions improve with potential interest rate cuts. The structural increase in market share remains a key factor supporting Hanssem’s high valuation.
LS Securities has maintained its "Buy" rating but reduced the target price from 74,000 won to 70,000 won, reflecting a 5.4% decrease.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
