Modutour shares fell 21% in five months
Kim SangJin
letyou@alphabiz.co.kr | 2024-07-18 07:08:47
Photo = Mode Tour
[Alpha Biz= Reporter Kim Sangjin] Modetour's Stock Price Expected to Fall Short of Market Expectations for Q2, Following Q1 Performance.
Concerns are growing that Modetour's stock price will once again fall short of market expectations in the second quarter, following a similar trend in the first quarter. This has led to a decline in the stock price over the past three months.
According to the financial investment industry on the 18th, Modetour's stock price has decreased by 21% over the past five months since hitting a yearly high on February 14th. On the previous day, it recorded a yearly low of 13,980 KRW during intraday trading. During the same period, its competitor Hana Tour saw a 9% decline, making Modetour's drop significantly larger in comparison.
Hana Securities estimates that Modetour recorded sales of 54.2 billion KRW and an operating profit of 1.5 billion KRW in Q2. Compared to the same period last year, sales increased by 39%, but operating profit decreased by 63%. The operating profit is expected to fall short of the market expectation of 4 billion KRW. Ki-Hoon Lee, an analyst at Hana Securities, explained, "We estimate that the number of customers sent in Q2 increased by 33% to 245,000 compared to the same period last year. However, aggressive marketing to expand market share in the ticket segment has led to poor cost control."
Modetour also failed to meet market expectations in Q1, with sales of 79.3 billion KRW and an operating profit of 5.7 billion KRW. While sales met market expectations, operating profit fell short by about 40%.
In contrast, Hana Tour exceeded market expectations in terms of operating profit for Q1 this year. Hana Tour recorded sales of 183.3 billion KRW and an operating profit of 21.6 billion KRW in Q1, with sales increasing by 121% and operating profit surging by 285% compared to the same period last year.
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