[Click eStock] "JTC, Earnings Surprise Highlights Undervalued Stock Price"

Sangsangin Securities analyzed on the 31st that JTC's earnings surprise has highlighted the stock's undervaluation. No investment opinion or target price was provided.

JTC recorded sales of 82 billion KRW and operating profit of 11.1 billion KRW in the first quarter (March to May). Hyemi Kim, a researcher at Sangsangin Securities, said, "Despite the historically strong yen depreciation continuing to negatively affect the performance when converted to KRW, the company achieved more than half of the previous year's annual operating profit in just one quarter."

She especially expected that this performance would highlight the stock's undervaluation. She said, "Thanks to a smooth start in the first quarter, the company has already exceeded the previously upwardly revised target operating margin of 10%. Although sales typically decline somewhat in the second quarter due to seasonality, we expect the positive trend to continue in the second quarter as well."

She emphasized, "With the number of inbound travelers to Japan recorded through June remaining robust, the number of Chinese tourists, a major nationality, is increasing. We cite the store renewal of the Doton Plaza Osaka branch, which accounts for 28% of single-store sales, as a basis for potential increases in average spending per customer and profitability improvement."

She forecasted, "Considering the increase in domestic inbound tourism and the improvement in H&B channel performance after last year's global reopening, the resumption of group tours by Chinese tourists and the increase in travel demand to Japan due to yen depreciation are highly likely to follow this trend."

She particularly anticipated that the issue of stock undervaluation would also be highlighted. She added, "Currently, JTC's stock price has only returned to the level of last May, when expectations for removal from the management stock designation were at their peak, after declining due to the disappearance of uncertainties and then gradually recovering. In other words, it is now time for the earnings to be reflected in the stock price."

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