[Click eStock] Jieosoft "Do People Still Go to Marts These Days?"

[Asia Economy Reporter Junho Hwang] Hana Financial Investment maintained its investment opinion on Jieosoft as 'Buy' and the target price at 21,900 KRW.

Hana Financial Investment focused on the growth of Oasis, a subsidiary of Jieosoft. Oasis is steadily growing along with the expansion of the online fresh food market. Although intensified competition within the industry is inevitable due to the entry of large corporations into the dawn delivery service, Oasis maintains its market share by securing a loyal customer base through price competitiveness in organic fresh foods. Recently, it also attracted investments from Kakao Investment and Korea Investment Partners. Next year, it is expected to continue rapid external growth through aggressive offline store expansion, new logistics center expansion, and an increase in dawn delivery days.

Hana Financial Investment forecasted that Jieosoft's sales in the fourth quarter of last year would increase by 77.1% year-on-year to 71.3 billion KRW, and operating profit would turn positive to about 2.9 billion KRW. Subsidiary Oasis is expected to continue increasing cumulative members on online channels and average daily orders in the fourth quarter. Accordingly, sales are projected to rise 86.3% year-on-year to 65.7 billion KRW, and operating profit is expected to reach 3 billion KRW. Sales and operating profit for this year are forecasted at 385.1 billion KRW and 16.9 billion KRW, respectively.

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