On the 8th, KB Securities expects the stock price rebound trend to continue based on the improvement of the business environment due to the transition to 'With Corona' and robust sales growth of overseas corporations.
Investment opinion 'buy' and target price remained at KRW 105,000.
KB Securities said, "Coway is expected to cruise with sales of 4.607 trillion won (+11% YoY) and operating profit of 742.5 billion won (+12% YoY) in 2022.".
As Malaysian and U.S. subsidiaries continue to grow, overseas corporations'share of consolidated sales and operating profit is expected to rise to 38% and 36%, respectively, in 2022, it added. The worsening operating profit ratio of domestic corporations is also expected to come to an end.
KB Securities estimated, "The domestic margin will deteriorate by 1.2 percentage point in 2021 due to the increase in various costs such as labor, R&D and marketing costs, but it will improve slightly by 0.4 percentage point in 2022.".
On the other hand, consolidated sales in the third and fourth quarters of this year were 934 billion won (+17% YoY) and operating profit was 163.8 billion won (-3% YoY), largely in line with the consensus.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
