Should You Investigate Hansae Co., Ltd. (KRX:105630) At ₩17,450?

Hansae Co., Ltd. (KRX:105630), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KOSE over the last few months, increasing to ₩20,150 at one point, and dropping to the lows of ₩15,950. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hansae's current trading price of ₩17,450 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hansae’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Hansae

What's the opportunity in Hansae?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.77% above my intrinsic value, which means if you buy Hansae today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is ₩17146.00, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Hansae has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Hansae generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Hansae's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in A105630’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on A105630, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Hansae, you'd also look into what risks it is currently facing. For example, Hansae has 3 warning signs (and 1 which is potentially serious) we think you should know about.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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