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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities analyzed on the 5th that Korean Air's performance in the fourth quarter of last year will be sluggish due to an increase in one-off labor costs. Daishin Securities maintained its investment opinion 'buy' and target stock price of 30,000 won for Korean Air. Korean Air's closing price on the previous day is 23,000 won.
Daishin Securities expects Korean Air's sales in the fourth quarter of last year to be 4.744 trillion won, up 13 percent from a year earlier, and its operating profit to be 415.7 billion won, down 20.1 percent over the same period. Operating profit is below market expectations.
Daishin Securities explained, "The business volume of the passenger and freight businesses will be good, but labor costs will increase significantly due to performance-based payments."
Daishin Securities said, "Excluding one-off bonuses, however, it would have achieved operating profit exceeding Korean Air's previous estimate." Daishin Securities estimated Korean Air's labor costs at 758 billion won in the fourth quarter.
Daishin Securities predicted that "the international passenger demand will continue to grow this year and the air freight sector will remain stronger than expected due to a recovery in semiconductor demand."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
