Korea Investment & Securities expects F&F to post its highest quarterly operating profit in the third quarter on the 21st.
It raised its operating profit estimates for this year and next year by 9% and 14%, respectively, raising its target stock price by 25% to 1 million won. The investment opinion remained 'buy'.
Korea Investment & Securities expects F&F's third-quarter sales to reach 308 billion won and operating profit to reach 78 billion won, up 83 percent and 516 percent, respectively, from a year earlier.
Korea Investment & Securities said, "The operating profit ratio will increase by 17.3 percentage points year-on-year to record the highest quarterly operating profit ratio due to the increase in profitable sales to China.".
Korea Investment & Securities analyzed, "High-margin export sales are rapidly increasing due to the strong Chinese business, and from the 4th quarter, duty-free is expected to recover and the operating profit ratio will rise to 25.4% this year.".
"MLB and Discovery are the only clothing brands that have entered the top 10 sales in the duty-free industry," Korea Investment & Securities said. "We expect the highest operating profit in the third quarter and strong growth in the fourth quarter due to the peak clothing season.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
