[Infostock Daily = Reporter Kim Jong Hyo] Yuanta Securities Korea on the 11st maintained its investment opinion on Aekyung Industrial, saying that its sales declined due to sluggish demand in the cosmetics sector, and lowered its target share price by 7.40% from 27,000 won to 25,000 won.
Aekyung Industrial's second-quarter sales fell 23% year-on-year to 121.9 billion won. Its operating loss turned into a deficit of 1.3 billion won.
Yuanta Securities Korea said, "The cost ratio in the cosmetics sector must have risen to around 40%, with the amount of inventory disposal expanding due to sluggish demand for all channels due to the influence of COVID19," adding, "The household goods sector continued to have strong sales."
Yuanta Securities Korea predicted that Aekyung Industrial's third-quarter sales will fall 13% year-on-year to 148.2 billion won and its operating profit will fall 43% to 8.5 billion won.
Reporter Kim Jong Hyo kei1000@infostock.com