[Click eStock] "The Nature Holdings, Finally Entering China... Expecting Overseas Growth"
Hanyang Securities analyzed on the 13th that The Nature Holdings is expected to experience substantial growth overseas through its entry into the Chinese market. They newly issued a 'Buy' investment rating and set a target price of 32,000 KRW.
The Nature Holdings opened its second store in Taiwan last August. Subsequently, on the 9th, it opened a store in the 'Deji Shopping Mall' in Nanjing, China. Lee Jun-seok, a researcher at Hanyang Securities, stated, "The opening dates for seven stores in China have been confirmed for the second half of this year alone," adding, "Having long awaited entry into the Chinese market, future progress is highly anticipated."
Additionally, brands with newly acquired licenses are also expected to contribute. He explained, "They hold licenses for the bicycle and lifestyle brand 'Brompton London' and the American street brand 'Mark Gonzales,'" further noting, "Since the domestic expansion potential of the flagship brand National Geographic is limited, new licenses are expected to provide fresh growth opportunities."
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The researcher expressed expectations that The Nature Holdings will continue its growth by expanding overseas beyond Asia. He said, "The Nature Holdings aims for mid- to long-term overseas expansion, with Phase 1 targeting Asian regions including Hong Kong, Taiwan, and China where it has already entered, as well as Singapore and Japan," adding, "Phase 2 involves expansion into Europe, including the UK and France, and North America." He further added, "Despite the growth prospects from overseas expansion and new brand sales, the company is currently receiving a significantly low valuation."
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