[Click eStock] JS Corporation, Emphasis on Stock Rebound Over Further Decline

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 11th that it maintains a buy rating and a target price of 42,000 KRW for JS Corporation. The target price was set by applying a target price-to-earnings ratio (Target PER) of 10 times to the expected 2022 earnings per share (EPS) of 4,195 KRW.

Han Kyung-rae, a researcher at Daishin Securities, stated, "Currently, JS Corporation's stock price has fallen to a multiple level of 4.9 times the expected 2022 PER, showing an excessive decline due to year-end major shareholder sell-offs and a weak stock market," adding, "Considering the reopening trend in 2022 with rising demand, simultaneous growth in scale and profits, and valuation levels at a historic low after COVID-19, a stock price rebound is expected rather than further decline."

The consolidated sales for Q4 2021 are expected to be 255.3 billion KRW (+16.3% YoY), and operating profit 15.3 billion KRW (+230.4% YoY). Despite Q4 being a seasonal off-season, steady growth is anticipated due to customer re-stocking expansion.

For 2022, consolidated sales are projected at 1.0918 trillion KRW (+11.5% YoY), operating profit at 73.4 billion KRW (+19.1% YoY), and operating profit margin (OPM) at 6.7% (+0.4%p).

Simultaneous growth in apparel and handbags is expected. In the second half of 2021, wholesale and retail inventory levels in the U.S. remain about 10% lower compared to 2019. Production and shipping normalization is expected to continue with the reopening trend in 2022.

Researcher Han explained, "Regarding the handbag segment, there are plans to expand the Boyolali factory in Indonesia," adding, "Key handbag brands such as Michael Kors, Coach, and Kate Spade are highly popular among the top 10 U.S. teenagers, so despite a high base in 2021, handbag sales in 2022 are expected to reach 286.1 billion KRW (+17.3% YoY)."

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