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(Photo = eternal trade) |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities predicted on the 15th that Youngone Trading would see a large decrease in profits in both original equipment manufacturing (OEM) and SCOTT in the first quarter. The target stock price was lowered from 64,000 won to 54,000 won, and the investment opinion was maintained at 'buy'.
NH Investment & Securities predicted that Youngwon Trading's first-quarter sales fell 14% on-year to KRW 719 billion and operating profit fell 45% on-year to KRW 92.4 billion.
"Considering the base burden of performance in the first half of last year, the order trend is good compared to excessive concerns," NH Investment & Securities said. "The operating profit ratio will stabilize downward after passing the manufacturer's advantage due to the recession."
Regarding brand sales, NH Investment & Securities said, "It will be difficult to expect a recovery in short-term performance due to sluggish demand for SCOTT inventory assets and bicycles, which soared to the highest ever at the end of last year."
"Considering the recession and margin pressure of outdoor-oriented customers, and uncertainties in SCOTT performance, the OEM division will adjust this year's and next year's operating profit estimates by -8% and -6%, respectively, and the range of EPS changes in the average annual exchange rate forecast will be minimal compared to operating profit," NH Investment & Securities said.
"The current stock price is at a level that reflects the decline in the performance level of the main business," he said. "Because of the current uncertainty about SCOTT performance of subsidiaries, it is a low-point purchase period when there is a significant decrease in SCOTT inventory assets throughout the year."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
