[Click eStock] Golfzon Expected to Benefit from With-Corona Recovery

[Asia Economy Reporter Junho Hwang] Shinhan Financial Investment maintained its target price for Golfzon at 185,000 KRW per share.

Shinhan Financial Investment forecasted Golfzon's Q3 revenue this year at 110.1 billion KRW (+38.3% YoY) and operating profit at 33 billion KRW (+111.3% YoY). The operating margin is expected to be 30.0% (+10.4%p YoY), continuing the improvement from 28.4% in the previous quarter, supported by an increase in the number of rounds and GDR members.

In particular, the GDR business, emerging as a new cash cow, is progressing smoothly. This business is expected to turn profitable in the second half of the year, with profit contribution becoming substantial.

The number of members has continued to increase from 44,000 as of last June. The GDR Plus feature has also been updated, providing AI-based coaching services. Expansion of golf lesson content services is anticipated in the future.

Business normalization following the entry into the With-Corona era is also positive. The easing of gathering size restrictions announced in mid-October is expected to lead to additional round sales. Considering that peak usage time is from 7 PM to 11 PM, extending business hours is also expected to generate additional revenue.

Researcher Ji-yeon Son analyzed, "The transition to With-Corona creates a favorable environment for Golfzon's business," adding, "With the structural change of domestic golf becoming a popular leisure activity and overseas sales growth, meaningful performance growth is expected to continue, which could lead to valuation rerating."

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