[Click eStock] "Coway, Unfavorable Market Supply and Demand... Target Price Down"

On the 7th, KB Securities lowered the target price for Coway from 75,000 KRW to 65,000 KRW. However, the investment rating was maintained at 'Buy.'

Coway recorded sales of 1.0062 trillion KRW and an operating profit of 194.2 billion KRW in the second quarter. In the third quarter, sales are expected to be 1.0474 trillion KRW and operating profit 181.8 billion KRW, generally in line with market expectations. Domestic sales are estimated to improve operating profit margin by 0.7 percentage points compared to the same period last year, due to price increases and efficiencies in logistics and advertising expenses. The number of rental accounts is expected to increase by 57,000 compared to the previous quarter.

KB Securities forecasts that Coway's annual sales and operating profit will rise by 5% and 7%, respectively, this year. Domestic sales are expected to decline slightly, but sales in Malaysia are projected to grow by 4% due to the effects of new products such as air conditioners and massage chairs.

Shinae Park, a researcher at KB Securities, said, "Despite continuing to show stable performance through entry into new countries and category diversification, the stock price has fallen due to unfavorable market supply and demand," adding, "It is possible to approach with low-price buying."

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