[Click eStock] "Clio, Strong Overseas Performance and Clear Domestic Recovery"

[Asia Economy Reporter Kwon Jae-hee] Hyundai Motor Securities on the 19th issued a 'Buy' rating and a target price of 25,000 KRW for Clio.

In the first quarter of this year, Clio recorded sales of 65.9 billion KRW and operating profit of 3.6 billion KRW. This represents an increase of 13.8% and 78.2%, respectively, compared to the same period last year. In the domestic market, offline channels in Korea (including Club Clio and special sales) recorded 2.6 billion KRW, H&B channels 17.9 billion KRW, and home shopping 1.4 billion KRW, increasing by 17%, 23%, and 59% year-on-year, respectively.

Jang Hye-jin, a researcher at Hyundai Motor Securities, analyzed, "With the planned closure of four additional Club Clio stores within the year, a break-even point (BEP) turnaround is expected, and with the easing of social distancing measures domestically, retail traffic is recovering, so sales are expected to gradually improve." She added, "The home shopping channel is also expected to see an increase in new product launches and broadcast frequency in the second quarter."

Online and global sales recorded 23.3 billion KRW and 11.3 billion KRW, respectively, representing increases of 9% and 21% compared to the same period last year. By region, sales in China fell 28% year-on-year to 7 billion KRW in the first quarter due to issues such as delivery disruptions caused by lockdowns in major local cities. Japan saw a 10% increase to 12.8 billion KRW due to an increase in offline store counters during the same period, while the U.S. recorded a 131% increase to 3.1 billion KRW.

Researcher Jang stated, "Although short-term performance declines in China are inevitable due to macroeconomic issues, sales growth in global regions outside China, including Japan and the U.S., remains solid." She forecasted, "If the profitability improvement effects from the domestic channel efficiency optimization become visible within the year, the upward momentum of the stock price will be strengthened."

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