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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] On Tuesday, Daishin Securities reaffirmed its ‘Buy’ rating on Lotte Chilsung, maintaining a target price of ₩150,000. The firm stated that the current stock price adequately reflects the sluggish domestic market. The previous day’s closing price was ₩102,700.
Lotte Chilsung reported an operating profit of ₩9.2 billion for Q4 2023, a 15.6% increase year-over-year. However, quarterly revenue stood at ₩923.3 billion, while net losses reached ₩21.7 billion.
Daishin Securities noted that weak domestic consumption, rising costs, and one-time labor expenses contributed to the underperformance, which fell short of market expectations.
Looking ahead, the firm expects continued challenges from weak domestic demand and high exchange rates but highlighted steady growth in core categories such as zero-calorie carbonated drinks and soju.
Lotte Chilsung plans to strengthen its market position by launching new flavored beverages and other products. Daishin Securities emphasized that international performance will be crucial in offsetting domestic weakness.
The firm also pointed to overseas growth potential, noting that a profitability improvement project for its Philippine subsidiary will conclude in Q3, while its high-margin Myanmar operations recently completed capacity expansion. It expects increased contributions from overseas markets, particularly Myanmar and Pakistan, to bolster overall earnings.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
