SK Securities raised the target price of Golf Zon from 120,000 won to 140,000 won and maintained its investment opinion at 'Buy'.
Golf Zon announced that it recorded sales of 99.4 billion won and operating profit of 28.4 billion won in the first quarter, up 36.6% and 85.5%, respectively, from the same period last year. The operating profit ratio recorded 28.6%, the highest quarterly performance.
"Despite the increase in new franchises since last year and the boom in screen golf since the resumption of operations in the Seoul metropolitan area in January, it has far exceeded the previous estimate," SK Securities said. "The total number of franchise locations has increased to 1,167 at the end of 2019, 1,423 at the end of 2020 and 1,530 in the first quarter of this year. That is leading the revenue growth."
The securities firm predicted, "Golf Zon will continue to see an increase in system sales due to an increase in new franchises and software sales due to the strong number of rounds through the year."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
