[Click eStock] "Boryeong, Conservative in Short Term... Expectation for Q4 This Year"

Sangsangin Securities on the 22nd forecasted conservative short-term earnings for Boryeong but expected a positive stock price in the fourth quarter of this year. They maintained a 'Buy' investment rating and a target price of 19,000 KRW.

Researcher Ha Taegi of Sangsangin Securities analyzed, "Although sales significantly increased in the first quarter of this year, the growth rate of operating profit was low," adding, "This was due to a rise in cost ratio and increased research and development expenses."

Researcher Ha stated, "Since the proportion of general hospital operations is high, there could be an impact from medical strikes, and considering the adaptation period for K-CAB sales, sales are more likely to increase in the second half rather than the first half," and evaluated, "Taking into account the interest rate situation, a conservative approach is necessary in the short term, but there is a high possibility that the stock price direction will improve around the fourth quarter of this year." He continued, "Operating performance, which forms the foundation of corporate value, is currently growing steadily," and predicted, "Marketing power based on Canav and sales synergy through the K-CAB licensing contract will be possible."

He added, "It is also judged that profit growth generated from economies of scale with a time lag will be possible in the future," and said, "Stable growth can be sustained in the domestic market going forward." He further added, "From a long-term perspective, the growth potential is evaluated positively."

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