[Edaily Reporter Kim Hyung-il ] DaishinSecurities maintained its “Buy” rating and target price of 30,000 won for HandsomeCorporation(020000), forecasting that revenue growth will recover in the fourth quarter as winter apparel sales gain momentum. The target price is based on an expected price-to-earnings ratio (PER) of 8 times for next year.

On the 3rd, Yoo Jeong-hyun, an analyst at DaishinSecurities, stated, “Although revenue growth in July and August was limited to the low to mid-single digits, the company recorded growth in the high single digits in September as sales of fall and winter products began in earnest,” adding, “Operating profit improved significantly due to strong sales of high-priced fall and winter products and lower inventory levels.”

According to DaishinSecurities’ analysis, HandsomeCorporation’s third-quarter revenue reached 324.8 billion won, a 5% increase year-over-year. Operating profit stood at 7.6 billion won, a 206% increase over the same period last year.

Cost efficiency also contributed to the improvement in profitability. Despite clearing out carryover inventory from July and August, the gross profit margin for the third quarter remained at the previous year’s level. By efficiently managing expenses such as advertising and promotional costs, the increase in selling, general, and administrative expenses was limited to just 2 percent. The combination of revenue growth and cost control created a leverage effect, resulting in a significant increase in operating profit.

Analyst Yoo predicted, “As we enter the full-fledged winter apparel sales season in November, revenue is expected to resume its growth trend,” adding, “Whether the fourth-quarter revenue growth rate reaches the mid-single digits or higher will be key to further earnings improvement.” He also forecast that the stock price would rise gradually as the November revenue growth rate is confirmed.

The shareholder return policy is another positive factor. Last September, HandsomeCorporation announced a shareholder value enhancement plan to repurchase and cancel 10 billion won worth of treasury stock annually for three years, from this year through 2028, and to raise the minimum dividend per share to 800 won. The company has already completed this year’s treasury stock repurchase.

Analyst Yoo commented, “I believe this stems not only from a desire to break free from chronic undervaluation but also from efforts to build market trust as a shareholder-friendly company through shareholder returns.”