[Click eStock] F&F Raises China Business Performance Estimates... Target Price 650,000 KRW

[Asia Economy Reporter Lee Seon-ae] KTB Investment & Securities announced on the 3rd a new 'Buy' rating on F&F, with a new target price of 650,000 KRW.

This is due to the upward revision of earnings estimates for the China business. MLB store openings are progressing faster than initially expected, and MLB Kids store openings are also gaining momentum.

All F&F brands, categories, and channels are showing growth, with explosive growth in China. Consumer demand expansion and channel expansion are occurring simultaneously. Based on the store opening trend, store expansion is expected to be greater than anticipated, and the number of brands entering the market is also increasing. Accordingly, the expected China earnings this year are projected to grow nearly 400% year-on-year, expanding to 26% of consolidated sales.

Delivery, a KTB Investment & Securities analyst, stated, "The target price of 650,000 KRW was calculated by applying a 12-month forward price-to-earnings ratio (PER) of 20 times," adding, "This applies the upper range of FILA Holdings' overseas momentum expansion phase, and considering the very steep performance of the China business and the possibility of further upward revisions in expected store openings, it is not burdensome at all, so we recommend buying."

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