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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On the 6th, Shinhan Investment lowered the target price for Lotte Chilsung from 180,000 KRW to 160,000 KRW.
Shinhan Investment stated, "Due to the prolonged domestic consumption slump, we have adjusted our profit estimates downward. The role of Pepsi Philippines will be crucial going forward. Overseas sales are expected to account for 20% in 2023, 38% in 2024, and reach 40% by 2025, serving as a production base for expanding beverages and soju in Southeast Asia."
Lotte Chilsung's Q3 revenue and operating profit were recorded at 1.07 trillion KRW and 78.7 billion KRW, respectively, missing the consensus by 8%.
Shinhan noted, "A short-term stock price adjustment is inevitable due to sluggish domestic consumption, cost pressures, and intensified promotional competition. However, with a goal to increase the overseas sales ratio to 45% through value enhancement plans, international expansion is expected to support a long-term stock price recovery."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
