[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities lowered the target price of Golf Zone by 23%. It reflected the overall sluggishness of the industry due to a slowdown in golf demand.

Golf Zone exceeded its market forecast with sales of 166.5 billion won and operating profit of 14.7 billion won in the fourth quarter of last year. Both sales and operating profit increased 17.8% and 97.7%, respectively, compared to the previous year.

NH Investment & Securities predicted that Golf Zone's sales and operating profit will rise 0.1% and 1.9% year-on-year to 685.5 billion won and 116.8 billion won, respectively

"Unlike field golf, it has a relatively low cost burden, which leads to a slowdown in the industry, but it is hard to deny that the slowdown in overall demand for golf is negative," NH Investment & Securities said. "We estimate that the sluggishness in the front golf industry will be negative for screen golf and GDR businesses, which are major businesses."

NH Investment & Securities lowered its target stock price from 130,000 won to 100,000 won in consideration of the sluggish front industry. However, the investment opinion maintained the purchase.

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