[Click eStock] "Coway, Continued Strong Performance... Target Price Up 7.5%"

[Asia Economy Reporter Park Jihwan] DS Investment & Securities maintained a 'Buy' rating on Coway on the 23rd, citing its continued strong performance, and raised the target price by 7.53% from 93,000 KRW to 100,000 KRW.

Researcher Kang Seonghoon of DS Investment & Securities stated, "Following the Q1 earnings surprise, Q2 results are also expected to show stable performance," adding, "The growth potential in markets such as Malaysia and the United States is expected to remain solid."

Q2 expected results are sales of 905.5 billion KRW and operating profit of 170.3 billion KRW, representing increases of 12.4% and 22.6% respectively compared to the previous year, which is expected to meet market consensus. Researcher Kang analyzed, "Based on current trends, the net increase in domestic rental accounts in Q2 is expected to slightly rise compared to Q1, recovering to average levels." Additionally, the cancellation rate, which had risen due to service technician issues, has decreased to below 1%, indicating stable customer management.

The steady growth of overseas subsidiaries is also noteworthy. This year, the driving force behind growth is expected to be the rapid expansion of overseas subsidiaries. The Malaysia subsidiary has shown consistent high growth of 20-30% over the past few years. This trend is expected to continue this year as well. Researcher Kang said, "Q2, like Q1, is a period where growth of overseas subsidiaries can be anticipated. For high-growth overseas subsidiaries, the role of specialized sales personnel is as important as coordinators managing customers." He added, "The Malaysia subsidiary currently has over 10,000 specialized sales personnel and plans to continuously expand this number over the next 2-3 years. The Indonesia subsidiary, an emerging market, is experiencing a rapid increase in this workforce." It is expected that aggressive sales activities will drive performance growth over the next five years.

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