Hanssem is experiencing a two-day decline in stock prices following an earnings shock, with its second-quarter operating profit falling significantly short of market expectations.
As of 9:41 a.m. on August 4, Hanssem's shares were trading at 16,100 won, down 1,360 won (7.79%) from the previous trading day on the Korea Exchange. The stock opened at 17,690 won but has since widened its losses. This follows an 11.37% drop the day before, marking a continued downturn.
The decline in stock price is attributed to disappointing second-quarter results. Hanssem reported an operating profit of 4.6 billion won, a 518.6% increase compared to the same period last year. However, revenue for the quarter was provisionally recorded at 363.2 billion won, a 7.4% increase, which met market consensus. The operating profit, however, fell about 60% short of the expected 11.5 billion won.
In response to the poor performance, analysts have lowered their target prices. Heungkuk Securities adjusted its earnings estimates for 2026-2027, reducing the target price from 33,000 won to 27,000 won, while maintaining a 'buy' rating.
Park Jong-ryul, an analyst at Heungkuk Securities, noted, "Hanssem slightly underperformed expectations due to a weakening gross profit margin." He added that the company is entering a phase of stabilizing and expanding volume with newly launched brands, supported by solid growth from its domestic core brands and an expanded import portfolio.
* This article has been translated by AI.
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