[Click eStock] Chinese Golf Boom?..."Golfzon, Growth Consumer Goods Buying Opportunity"

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities stated on the 29th that Golfzon's domestic growth will peak this year, but since momentum from golf practice ranges (GDR) and overseas growth has been confirmed, it is an opportunity to buy undervalued growth consumer goods.

Researcher Lee Hyo-jin of Meritz Securities said, "Golfzon's momentum to lead next year, when domestic growth is expected to reach its limit, was overseas performance, but it took time to confirm this, resulting in a (stock price) adjustment over the past four months," adding, "As global vaccination rates increase, domestic leisure activities in each country are recovering rapidly, so Golfzon's exports are expected to regain momentum."

He said, "Golfzon currently generates about 15 billion KRW in overseas sales per quarter, so overseas profit contributions are expected to become full-scale next year," and added, "Golfzon's price-earnings ratio (PER) for next year is 8 times, which is considered a good opportunity to buy growth consumer goods."

Golfzon's consolidated sales and operating profit for the third quarter were 123.1 billion KRW and 32.7 billion KRW, respectively, increasing by 54.6% and 138.1% compared to the previous year. These figures exceeded expectations. All sectors, including the franchise business, golf practice ranges (GDR), and overseas, surpassed forecasts. Also, the number of rounds played reached a record high. In the overseas sector, third-quarter sales in China were 6.5 billion KRW, surpassing the first half's 4 billion KRW and achieving a turnaround to profitability. Although advertising expenses were additionally spent more than expected, overseas sales and other factors offset this, according to analysis.

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