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[Alpha Biz=(Chicago) Reporter Paul Lee] Sangsangin Securities maintained its investment opinion 'buy' and target stock price of 30,000 won on Aekyung on the 30th. Although sales fell below estimates in the fourth quarter of last year, the company believes that continued growth is expected and there are no factors of concern.
"Aekyung's fourth-quarter sales were 175.8 billion won and operating profit was 11.6 billion won, below our estimates," Sangsangin Securities said. "There was no concern considering that preemptive marketing investment was made during the fourth quarter as a result of the reflection of one-time cost (year-end bonus of 2 billion won)."
"By sector, cosmetics grew 10% and operating profit grew 12% year-on-year," Sangsangin Securities said. "By brand, Age 20's (+12%), which accounted for 89% of sales, continued to be strong, but Luna (-6%) was somewhat sluggish due to intensifying competition in domestic H & B channels despite high growth in Japan."
Sangsangin Securities said, "By channel, overseas exports grew 14% year-on-year, and domestic online and H & B continued to grow by two digits," adding, "By product line, home care recorded the previous year's level, but personal care increased by 11%. By channel, we showed good performance in Daiso."
Sangsangin Securities said, "This year, Aekyung will continue to grow in line with the schedule of launching new products, expanding new growth channels, and entering new regions."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
