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Source: Hanssem |
[Alpha Biz= Kim Jisun] SEOUL, November 17 — Hanssem, Korea’s largest furniture company, is expected to see continued earnings pressure as apartment transactions have sharply declined following the government’s October 15 housing market measures, according to analysts.
Samsung Securities analyst Heo Jae-jun reported that Hanssem’s Q3 B2B sales fell to KRW 98.6 billion, dropping 5.8% year-over-year and falling below KRW 100 billion for the first time since Q3 2021. The decline was driven by slowing move-in volumes and expectations of reduced new housing supply.
Hanssem’s B2B business—accounting for about 25% of total revenue—supplies kitchens and built-in furniture to builders. The depressed pre-sale market pushed special-order B2B sales down 12.2% year-over-year.
Although the new regulations were not reflected in Q3 earnings, housing sales have already weakened, with nationwide Q3 transactions falling 3.5% to 174,000 units.
Citing a sharp drop in apartment transactions and shrinking move-in volume starting this year, Heo lowered his target price for Hanssem by 22%, from KRW 62,000 to KRW 48,500.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
