[Click eStock] 'Surprise Earnings' T&L, Export Surge Expected This Year... Target Price Up

[Asia Economy Reporter Ji Yeon-jin] Ebest Investment & Securities announced on the 27th that it is raising the target price for T&L from the previous 46,000 KRW to 53,000 KRW based on the surprise earnings in the second quarter of this year.

T&L recorded sales of 23.6 billion KRW in the second quarter of this year, a 41% increase compared to the same period last year, and operating profit of 8.3 billion KRW, up 34%. These results exceeded market expectations by 8% in sales and 15% in operating profit.

Researcher Cho Eun-ae of Ebest Investment & Securities stated, "The sales surprise is attributed to the effect of new products launched in the first half of the year (Nose Patch, Face, Microneedle), with export sales of 7 billion KRW from three new products excluding the acne patch," adding, "The export contribution to sales is estimated to be 46%."

Considering supply contracts and export growth rates, additional expansion is expected by the end of the year, and sales for this year are projected to increase by 24% year-on-year to 89.2 billion KRW, with operating profit rising 35% to 30.1 billion KRW.

Researcher Cho said, "Since the new factory started operations in June, production capacity increased by 50% to 75 billion KRW, and considering supply contracts and export growth rates, additional expansion will be necessary by the end of the year," adding, "When sales to Europe begin in earnest, further upward revisions of earnings are possible. Currently, the stock is trading at a price-to-earnings ratio (PER) of 10.6 times for this year, at the lower end of the band, so it is expected that multiple re-rating will be possible while confirming export performance each quarter."

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