[Click eStock] "EcoMarketing, Q2 Earnings Expectations Rise with Success of Cluck and Ohora"

Hana Financial Investment Report,
2020 Operating Profit Forecast Raised by 10%

[Asia Economy Reporter Minji Lee] Hana Financial Investment on the 2nd gave a buy rating and a target price of 49,000 KRW for Eco Marketing. This is based on the judgment that sales can increase significantly by successfully branding the Cluck massager and Ohora gel Naeil through performance marketing strategies.

Lee Ki-hoon, a researcher at Hana Financial Investment, said, "Reflecting much better-than-expected results in the second quarter and positive market conditions continuing through the third quarter, operating profit this year is expected to reach 48.1 billion KRW, a 10% upward revision from the previous forecast," adding, "In the context of concentration on online advertising, it is necessary to steadily raise expectations for the performance of Eco Marketing, a performance marketing company."

Second-quarter sales and operating profit were 46.5 billion KRW and 16.4 billion KRW, respectively, representing 87% and 101%. Eco Marketing is judged to significantly exceed the previous operating profit estimate of 13.4 billion KRW.

The background of the record performance is that, based on high competitiveness in marketing, products such as low-frequency massagers and gel Naeil, which are not simple products, have succeeded in branding as Cluck and Ohora, thereby significantly extending the product lifespan. Combined with the seasonal peak, the highest-ever quarterly operating profit is expected, exceeding 40% performance.

Third-quarter sales and operating profit are expected to be 38.5 billion KRW and 13.8 billion KRW, respectively, increasing by 8% and 20% compared to a year ago. This is because CPS sales growth based on performance marketing and the continuation of the seasonal peak through the third quarter make it unlikely to fall significantly compared to the second quarter.

Researcher Lee Ki-hoon said, "The recently launched new product of Cluck is also at the stage of contributing to sales," and added, "Mongje is also highly likely to break its record for the highest performance in July and August, when the worst heatwave in history is expected."

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