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| 롯데칠성음료의 제로 슈거 제품들. (사진=롯데칠성음료) |
[Apha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities lowered its target stock price from 200,000 won to 180,000 won on the 3rd, believing that short-term spending on Lotte Chilsung will be inevitable. The investment opinion remained 'buy'.
"We lowered our earnings estimates due to liquor cost burden and marketing costs and lowered the target price by 10% to reflect the falling valuation of the same company," said Shinhan Investment & Securities Co. "Although short-term cost input is inevitable, excessive spending is limited to manage the ratio of advertising promotion to sales."
Lotte Chilsung's performance in the second quarter of this year was below the consensus. Sales in the second quarter rose 4.5 percent on-year to 796.2 billion won and operating profit fell 7.2 percent to 59.2 billion won.
"Lotte Chilsung's second-quarter performance was 8% below the consensus, but sales were good despite the negative business environment, but the cost burden and marketing costs were disappointing," Shinhan Investment & Securities said. "The sales of liquor increased by 5.1% thanks to the 'new' increase in sales, but its operating profit decreased by 76% due to the cost burden and marketing costs."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
