[Click eStock] "Aurora, Steady Growth Domestically and Internationally... Target Price Up"

[Asia Economy Reporter Jang Hyowon] Heungkuk Securities on the 21st raised the target price for Aurora to 15,000 KRW, citing steady growth and recovery both domestically and internationally. This implies a 43% upside potential compared to the current stock price.

Choi Jongkyung, a researcher at Heungkuk Securities, stated in a report on the same day, “Aurora recorded sales of 35.9 billion KRW and operating profit of 4.9 billion KRW in the first quarter of this year, representing increases of 1.8% and 11.3% respectively compared to the same period last year. Considering that the impact of COVID-19 began in earnest from the second quarter of last year, and the quarterly exchange rate decline directly affecting the structure with a high proportion of overseas sales, the recovery is judged to be more positive than the actual figures suggest.”

Researcher Choi explained, “Looking at sales by region, the U.S. recorded 21 billion KRW and Korea 9.2 billion KRW, increasing by 3.4% and 4.3% respectively. This confirmed the recovery in the North American market and steady growth in the domestic market.”

He added that special attention should be paid to the clear recovery in the U.S. subsidiary’s dollar-based sales, which increased by 10.8% compared to the same period last year.

Additionally, ‘Yoohoo and Friends’ is expanding its global service area by streaming on Netflix, and ‘Shinbi Apartment’ continues to record high viewership ratings on Tooniverse with each season, driving the strong performance of Aurora’s domestic toy product line.

He said, “From the second quarter of this year, the base effect impacted by COVID-19 will be reflected, and from the second half of the year, sales growth is expected due to the seasonal peak and the launch of new domestic products. We maintain a buy investment opinion and raise the target price to 15,000 KRW.”

Furthermore, he added, “Aurora is already a company with high asset value at its headquarters on Teheran-ro, and from this year, the asset value is expected to be further highlighted with the addition of the newly completed Pangyo headquarters (R&D center) in Pangyo 2nd Techno Valley (iSquare).”

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