IBK Investment & Securities analyzed on the 8th that F&F sales to China drove growth and demonstrated 30% performance surprise and operating profit ratio (OPM) in the third quarter.
Considering the growth of the Chinese market in the future, the target price has been raised from 850,000 won to 1.2 million won. The investment opinion remained 'buy'.
F&F is a clothing company with brands such as Discovery. In the third quarter of this year, the company demonstrated a surprise, surpassing the consensus by 7.2% and 28.7%, respectively, with total sales of 328.9 billion won and operating profit of 9.6 billion won.
In the third quarter, OPM was 29.1%, up 5% points from the previous quarter even during the off-season.
"We have demonstrated 30% of the OPM range due to Chinese store expansion, the reflection of high-margin Aodoor player demand in the fourth quarter and the resulting sales leverage effect," said IBK Investment & Securities. "The number of stores in China is accelerating. The number of stores from 110 in the first quarter will be 380 in the third quarter and 450 by the end of the year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
