On the 20th, Hanwha Investment & Securities predicted that Innocean, a large advertising company in Korea, its 3rd and 4th quarter earnings will exceed the market forecast (Consensus) due to even growth of affiliates and non-affiliated companies.
As a result, the target price was raised from 75,000 won to 80,000 won, and the investment opinion remained 'buy'.
Hanwha Investment & Securities estimated Innocean's total sales profit of 164.8 billion won and operating profit of 37.3 billion won in the third quarter of this year.
This is an increase of 15.0% and 38.3%, respectively, compared to the same period last year. In the case of operating profit, it was analyzed that it exceeded the consensus by 9%.
"We expect that campaigns related to electric vehicles by major advertisers such as Ionic 5 and EV6 will expand at home and abroad and drive the performance.
The volume of new non-affiliate advertisers will continue to increase, and this portion will grow to 33% in gross profit," Hanwha Investment & Securities explained.
Hanwha Investment & Securities expects Innocean's total sales profit in the fourth quarter to rise 5.4% year-on-year to 177.8 billion won.
Hanwha Investment & Securities added, "However, the operating profit will fall 2% to 40.5 billion won due to the previous year's reverse base effect, which reflects one-off profits.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
