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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities lowered Jin Air's target price from 20,000 won to 16,000 won on the 21st. The closing price on the 20th is 12,380 won.
"Jin Air's third-quarter operating profit was 32.6 billion won, below estimates of 50 billion won in Daishin Securities and 45 billion won in market consensus by 34.8% and 27.6%, respectively," Daishin Securities said. "The increase in supply exceeded variable costs such as maintenance costs, airport-related costs, and labor costs."
"As of the third quarter, international supply volume for 2023 was about 83.3% and 90.2% compared to 2019, 177.5% in 2023, and labor costs increased significantly considering supply and transportation," Daishin Securities said. "Considering the sluggish performance, operating profit estimates for 2023-2024 will fall by 12.6% and 19.4%, respectively."
"The key is to level up the cost structure compared to before COVID-19," Daishin Securities said. "Only when the rise in yield is supported can we expect profitability that meets the market's eye level."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
