Amid short-term share price weakness, securities firms project that Hana Materials will record an all-time high annual operating profit next year. With this year's third-quarter results also estimated to exceed market expectations, short-term share price movements and mid- to long-term earnings outlooks are diverging.

As of the morning of the 22nd, Hana Materials (166090) was trading at 54,000 won, down 900 won (1.64%) from the previous trading day.

Q3 Results Expected to Beat Consensus

Although the share price fell, Yuanta Securities projected that both revenue and operating profit for this year's third quarter will increase significantly year-on-year. Yuanta Securities forecast Hana Materials' Q3 2026 revenue at 97 billion won, up 7.9% from the previous quarter and 39.3% from the same period last year. It estimated operating profit at 27.2 billion won, up 4.0% from the previous quarter and 125.1% year-on-year, with an estimated operating margin of 28.0%.

Compared with market expectations, positive results are anticipated. Based on the past month, the market consensus stands at revenue of 96.6 billion won and operating profit of 26.1 billion won, meaning Yuanta Securities' estimates are 0.4 billion won higher for revenue and 1.1 billion won higher for operating profit.

Notably, the projected year-on-year operating profit growth rate (125.1%) far exceeds the revenue growth rate (39.3%). The outlook suggests that profit growth will be relatively larger alongside revenue expansion. However, compared with the previous quarter, operating profit growth of 4.0% is lower than revenue growth of 7.9%, so annual growth rates and quarterly profitability changes should be examined separately.

Next Year's Operating Profit Forecast at 147.2 Billion Won, a New Record

Yuanta Securities also projected that earnings growth will continue into 2027. Next year's annual operating profit is expected to reach 147.2 billion won, up 43.7% from this year, setting a new all-time high. The projected 2027 operating margin of 31.1% is 3.1 percentage points higher than this year's Q3 estimated operating margin of 28.0%. However, as this compares quarterly figures with an annual forecast, actual profitability improvements must be confirmed through future results.

If profits grow as projected, Hana Materials will set a new record in annual earnings. The 147.2 billion won figure presented by Yuanta Securities is roughly 5.4 times this year's Q3 estimated operating profit of 27.2 billion won.

It should be noted, however, that both the Q3 results and the 2027 annual operating profit are securities firm estimates. Actual results may vary depending on future business conditions and performance.

Key Points to Watch

Regarding Hana Materials' share price movements, whether Q3 results will beat market consensus and the feasibility of the projected record operating profit for 2027 have emerged as key focal points. Attention is focused on whether securities firms' expectations for profit growth will hold up despite short-term share price weakness.

[This article is intended to provide information for investment reference purposes and does not recommend the purchase or sale of any specific stock. Conditions may vary depending on market circumstances. Investment decisions and the responsibility for them rest with the investor. AI provided partial assistance.]