Daishin Securities predicted that its performance this year and next year will be better than previous expectations, following its positive performance in the third quarter of this year on F&F on the 5th.
Daishin Securities raised its target stock price for F&F from 900,000 won to 1.1 million won. The investment opinion remained 'buy'.
Sales of F&F in the third quarter were 328.9 billion won and operating profit was 95.7 billion won, up 106.0 percent and 658.7 percent, respectively, from a year earlier.
"In the case of Discovery, the category has been expanding well from clothing to shoes and backpacks, and the brand has entered a high-growth phase again," Daishin Securities said. "It has been confirmed that structural growth is continuing.". In the case of MLB, the growth rate of domestic general channels was 286%, and sales of Chinese subsidiaries were 123.5 billion won, up 104% from the previous quarter.
"At the end of the third quarter, the number of MLB stores in China reached 389, up 165 from the second quarter," Daishin Securities said. "MLB Kids also increased 83% year-on-year, continuing high growth across all brands and channels.".
Daishin Securities raised its earnings estimate by predicting that F&F will continue to grow this high next year.
This year's sales estimate increased 9.0% from 1.264 trillion won to 1.379 trillion won, and operating profit estimate was raised 14.2% from 292 billion won to 334 billion won.
Sales for next year increased 15.2% from 1.985 trillion won to 2.286 trillion won, and operating profit increased 15.2% from 471 billion won to 542 billion won, respectively.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
