[Click eStock] "Jeju Air, 2Q Deficit Expected to Widen... Target Price ↓"

[Asia Economy Reporter Hwang Yoon-joo] Jeju Air analyzed on the 14th that SK Securities expects the scale of the second-quarter deficit to fall short of consensus due to the slow recovery of international passenger traffic. Accordingly, the investment opinion was maintained as 'Buy,' but the target stock price was lowered to 18,000 KRW.

Researcher Yoo Seung-woo of SK Securities stated, "It is estimated that the operating loss in the second quarter will be 71.1 billion KRW, falling short of the consensus (44.4 billion KRW)." Sales are expected to reach 103.9 billion KRW, an increase of 38.3% compared to the same period last year.

Researcher Yoo pointed out, "International passenger sales are estimated at 15.4 billion KRW, a 367.5% increase compared to the same period last year," adding, "This is significantly lower than the estimated 101.0 billion KRW."

However, a recovery trend is expected from the second half of the year due to the summer vacation season in the third quarter and the year-end vacation season in the fourth quarter.

Researcher Yoo analyzed, "Although travel demand may not recover as much as expected due to the somewhat high passenger fares caused by the shortage of aircraft supply, a favorable trend is expected compared to the almost nonexistent levels so far."

He evaluated, "In particular, a visible recovery in travel demand on the Japan route, one of Jeju Air's main routes, may appear."

Instead, reflecting the slow recovery of international passengers, the 12M Fwd EBITDA (12-month forward estimated cash operating profit) was revised downward by 37.6% from 255 billion KRW in the previous report to 159 billion KRW, and the target stock price was also lowered by 30.8%.

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