[Special Stock] 'Strong Performance Despite Domestic Demand Slump' Lotte Chilsung Up 5.47%
The stock price of Lotte Chilsung, which has posted solid performance despite domestic consumption stagnation, is on the rise. The increase in beverage prices has improved operating profit, and the stock price has responded positively as Pepsi Philippines turned profitable.
As of 9:22 a.m. on the 31st, Lotte Chilsung was trading at 142,600 KRW, up 7,400 KRW (5.47%) from the previous trading day.
On the same day, Shinhan Investment Corp. raised Lotte Chilsung's target price by 6% to 180,000 KRW, citing "upward revision of earnings estimates and the change in accounting standards year."
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Researcher Sanghoon Cho of Shinhan Investment Corp. stated, "The current stock price is only 9 times the 12-month forward price-to-earnings ratio (PER), making the valuation attractive. The role of Pepsi Philippines will be important going forward. There are factors for valuation reappraisal in terms of overcoming the limitations of domestic companies, including a significant increase in overseas sales ratio (20% last year, 38% this year, 40% next year), production bases for beverage and soju expansion into Southeast Asia."
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