[Click eStock] "Lotte Chilsung, Strong Overseas Performance... Target Price Up"

On the 31st, Kiwoom Securities positively evaluated Lotte Chilsung's strong performance of its overseas subsidiaries. Accordingly, they maintained a 'Buy' investment rating and raised the target stock price to 180,000 KRW.

Sangjun Park, a researcher at Kiwoom Securities, stated, "While the separate entity's performance was sluggish, the improvement in overseas subsidiaries' results compensated for this, leading to a 2% increase in operating profit on a consolidated basis for the second quarter compared to the previous year, reaching 60.2 billion KRW."

Researcher Park explained, "Operating profit from overseas subsidiaries recorded 21.1 billion KRW, an increase of 11.2 billion KRW compared to the same period last year, supported by favorable weather conditions and restructuring effects at the Philippine subsidiary."

Park analyzed, "Pepsi Philippines is experiencing growth in sales volume and profits, driven by company-wide cost reductions and increased sales centered on Sting and Mountain Dew, while the Myanmar subsidiary plans to more than double its production facilities to meet strong market demand."

He added, "As profitability of overseas subsidiaries improves, especially centered on Pepsi Philippines, and cost increases are offset by price hikes, Lotte Chilsung's overall performance is expected to gradually rebound."

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