[Click eStock] "Wontech, Previous Day's Stock Decline Attributed to Q2 Earnings Concerns"

Shinhan Investment Corp. diagnosed on the 11th that Wontec's stock price plunged sharply the previous day due to concerns over missing the Q2 consensus. No target price or investment opinion was provided.

Researcher Jeong Hee-ryeong explained, "On the 10th, Wontec's stock price fell about 9%, which is attributed to concerns over missing the Q2 consensus due to continued declines in domestic sales and La Vie en sales."

He added, "Since the Q1 earnings shock, the stock has remained at the bottom end of the multiple band. While the most important overseas growth exceeded estimates and was considered undervalued, short-term rebounds in the oversold zone caused by the earnings shock depended on confirming Q2 results."

He continued, "Q2 is also estimated to miss consensus due to the impact of continued declines in domestic and La Vie en sales from Q1. However, I believe that yesterday's sharp drop has sufficiently reflected the Q2 earnings in the stock price," he added.

He further noted, "A point to watch in the Q2 earnings is that the deferred amount per quarter is decreasing. We estimate about 7 billion KRW deferred in Q1 and around 1 billion KRW in Q2."

However, he forecasted that performance improvement is possible from Q3 in the second half of the year.

Researcher Jeong projected, "Q3 sales are estimated to increase 50.5% year-on-year to 39.7 billion KRW, and operating profit is expected to grow 58.4% to 15 billion KRW. Operating margin is anticipated to reach 38%, indicating a recovery of the existing growth trend."

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