"OttoGI Target Price Downgraded from 600,000 to 510,000 Won"

[Asia Economy Reporter Park So-yeon] NH Investment & Securities has lowered the target price for Ottogi from 600,000 KRW to 510,000 KRW, stating that long-term growth drivers are needed.

In a recent report, researcher Jo Mi-jin of NH Investment & Securities forecasted, "As the price increase effect of some Ottogi products becomes fully effective next year, the profitability that had declined will recover."

Researcher Jo Mi-jin pointed out, "However, there is a limitation in that the profit leverage expansion is limited during the period of raw material price decline related to product sales," adding, "From a mid- to long-term perspective, it is necessary to secure growth drivers in terms of product, channel, and regional portfolio."

She added, "It is time to consider product diversification and new product development, active overseas expansion, and improvement of corporate governance."

She projected consolidated sales of 656.5 billion KRW and operating profit of 26.1 billion KRW for the fourth quarter of this year. For next year, consolidated sales are expected to reach 2.8421 trillion KRW, with operating profit of 177.8 billion KRW.

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