[Click eStock] "Golfzon, 4Q One-Time Expenses... Entering Attractive Price Range"

[Asia Economy Reporter Kwon Jae-hee] Meritz Securities maintained its 'Buy' rating on Golfzon on the 25th and raised the target price to 220,000 KRW.

Golfzon's consolidated sales for the fourth quarter of last year amounted to 112.1 billion KRW, with an operating profit of 12 billion KRW. Compared to the same period last year, these figures represent increases of 51.5% and 84.3%, respectively, but they fell significantly short of market expectations. However, this was due to a one-time incentive payout effect following high performance over the past three years. Overseas subsidiary sales increased to 17.6 billion KRW from 15.5 billion KRW in the previous quarter.

Meritz Securities forecasted that Golfzon's new sales revenue would decrease by 20% this year due to rapid growth in new sales over the past three years. However, first-quarter new store openings are expected to be on par with the previous year, and the number of rounds played is also anticipated to increase. The business environment in China is somewhat unfavorable due to the impact of the Winter Olympics, which is considered a negative factor.

Researcher Lee Hyo-jin of Meritz Securities stated, "If normalization occurs quickly in March, we expect remarkable performance comparable to the highest operating profit ever recorded," adding, "Considering overseas expectations, low valuation, and a dividend yield close to 3%, Golfzon has entered an attractive price range once again."

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