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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities maintained its target stock price of 86,000 won and investment opinion as 'buy' on the 3rd.
Daishin Securities predicted that Youngwon Trading's sales in the fourth quarter of last year will be 839.4 billion won, down 19% from a year earlier. Operating profit is forecast to fall 34% to KRW 127.9 billion. "The reason for the sluggish sales is the OEM division. The division's operating profit is expected to fall 25% year-on-year due to falling orders and falling exchange rates," said Yoo Jung-hyun, a researcher at Daishin Securities Co.
"Youngwon Trading's OEM division grew well above the industry average in the second half of last year when supply chain bottlenecks and excessive inventory problems were raised," Daishin Securities said. "The sluggish sales continued last year in the wake of the significant impact of the base burden."
Daishin Securities also estimated that "Scott," a bicycle brand of Youngwon Trading, will see its sales fall 20% year-on-year in response to a surge in demand over the past two years. "The demand for bicycles has been in place and the off-season has overlapped," he said. "Scott's operating profit in the fourth quarter is expected to be KRW 11.5 billion, down 69% from a year earlier."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
