[Click eStock] "Golfzon Newdin Holdings, Performance Improvement Across All Sectors... Undervalued Value Stock"

[Asia Economy Reporter Hyunseok Yoo] Hana Financial Investment analyzed on the 17th that Golfzon Nudin Holdings is an undervalued value stock expected to see performance improvements across all business divisions. They gave a 'Buy' investment rating and a target price of 9,470 KRW.

Golfzon Nudin Holdings started with golf simulators and has now expanded its business to golf course operations and golf equipment distribution. In 2015, it transitioned to a holding company structure through a spin-off by division of personnel and assets, currently holding 2 major subsidiaries and 12 affiliates.

Hana Financial Investment analyzed that amid restrictions on outdoor activities due to the novel coronavirus disease (COVID-19), golf has emerged as an 'untact sport,' leading to an increase in golf course visitors. They emphasized, "Not only has the number of visits to domestic golf courses increased due to existing golfers being unable to play overseas golf because of entry and exit restrictions, but there is also a continuous influx of women and people in their 20s and 30s. Additionally, the implementation of the 52-hour workweek has increased leisure time, resulting in more weekday golf course visitors."

As a result, Golfzon Nudin Holdings is expected to record strong performance in the third quarter. Hana Financial Investment forecasts that Golfzon Nudin Holdings’ third-quarter sales and operating profit will reach 88.3 billion KRW and 15.3 billion KRW, respectively, representing increases of 47.4% and 2,185.7% compared to the same period last year. Researcher Lee Jung-ki stated, "Although the increased number of rainy days compared to previous years is expected to negatively impact the business environment, the relatively limited adverse effects of COVID-19 compared to the previous quarter and sales growth due to green fee hikes from golf popularization will act as positive factors contributing to performance improvement."

The golf equipment business is also expected to grow. He explained, "Despite a slight decline compared to the previous quarter, sales are expected to increase by nearly 40% year-on-year due to continuous growth in the online distribution sector and increased equipment purchases from new golf population inflow. The increase in rainy days and the arrival of the vacation season are considered causes of the slight sales decrease compared to the previous quarter but are not expected to have a significant impact."

Strong performance is also anticipated this year. Hana Financial Investment projects that Golfzon Nudin Holdings’ sales and operating profit for this year will be 299.2 billion KRW and 39.9 billion KRW, respectively, representing a 30.7% increase in sales and a turnaround to profitability in operating profit compared to the previous year. He emphasized, "The increase in brand royalties and equity-method gains, along with improved performance in the golf equipment business, are considered the main factors. Next year, this performance improvement trend is expected to continue, driven by expansion through continuous golf course acquisitions and the high growth potential of the online business division in the golf equipment sector."

This content was produced with the assistance of AI translation services.