Hanssem, a fashion company under the Hyundai Department Store Group, is experiencing strong early trading after announcing a long-term shareholder return policy and positive expectations for its Q3 performance.
As of 9:48 a.m. on the Korea Exchange, Hanssem's shares were trading at 18,200 won, up 3.59% (630 won) from the previous trading day.
On September 18, Hanssem announced a long-term shareholder return policy aimed at addressing its undervalued corporate value. The company plans to buy back 10 billion won worth of its own shares from now until October 22, with plans to retire all shares on November 6. Additionally, Hanssem intends to buy back another 10 billion won worth of shares in both 2027 and 2028, also retiring those shares. The company has raised its dividend payout ratio target from the previous 15% to over 20%, increasing the minimum dividend per share from 750 won to 800 won.
Analysts believe the positive outlook for Q3 performance has also boosted investor sentiment.
Jung Ji-yoon, a researcher at NH Investment & Securities, forecasts that Hanssem's consolidated sales for Q3 will increase by 7% year-on-year to 332.3 billion won, with operating profit expected to rise by 303% to 10 billion won. Jung noted that sales in September, coinciding with the start of the fall/winter season, are showing double-digit growth.
Jung stated, “The reduction in inventory during the first half is expected to improve the gross profit margin, and the strong sales of key brands like Time & Mind at regular prices will enhance profitability.” NH Investment & Securities has raised its target price for Hanssem by 8% to 27,000 won while maintaining a 'buy' rating.
Daishin Securities also positively assessed Hanssem's performance improvement and shareholder return plan. Yoo Jeong-hyun, a researcher at Daishin Securities, predicts Q3 sales will increase by 11% year-on-year to 343.1 billion won, with operating profit expected to rise by 198% to 7.4 billion won.
Yoo noted, “The cooler weather in September and the wealth effect have significantly boosted sales growth, and the strong sales of high-priced fall products, along with reduced inventory levels, are expected to help the operating profit recover from the previous quarter's poor performance.” Daishin Securities maintains a 'buy' rating and a target price of 30,000 won.
* This article has been translated by AI.
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