Shinhan Investment Highlights Hanil Cement for Its Ideal Business Structure and Dividend Appeal
Shinhan Investment Corp has maintained a 'buy' recommendation for Hanil Cement, emphasizing the company's ideal business structure and the added benefit of its dividend appeal, with a target stock price of 17,300 KRW.
In a recent analysis by Shinhan Investment Corp, Hanil Cement was spotlighted for its robust business model and attractive dividends, affirming a positive outlook for the company's stock with a 'buy' recommendation and a target price set at 17,300 KRW. The investment firm's confidence is buoyed by Hanil Cement's financial performance in the last quarter of the previous year, where the company reported significant growth. Revenues reached 493.8 billion KRW, and operating profits stood at 64.7 billion KRW, marking year-over-year increases of 17.5% and 99.2%, respectively. This performance underlines the company's strong market position and operational efficiency.
Shinhan Investment Corp attributed this success to healthy sales volumes and price increases in the remicon (ready-mixed concrete) sector, suggesting sustained growth despite potential decreases in shipments. The analysis further pointed out Hanil Cement's comprehensive coverage in the construction sector, providing it with a competitive edge in maintaining profitability. Looking forward, the firm expects Hanil Cement's strategic pricing for cement and remicon to maintain its relative advantage in profitability.
Moreover, the dividends policy of Hanil Cement was specifically highlighted as enhancing its investment appeal. Last year's record performance paved the way for significant dividend payouts, and considering the company's solid profitability and strong financial structure, expectations are high for continued dividend attractiveness in 2024.
