[Click eStock] "F&F, Both Performance and Valuation Passing the Bottom"

NH Investment & Securities analyzed on the 13th that both the performance and valuation of F&F are passing through their bottom points. The investment opinion 'Buy' and the target price of 83,000 KRW were maintained.

NH Investment & Securities expects F&F's sales and operating profit in the fourth quarter of this year to reach 572.3 billion KRW and 122.5 billion KRW, respectively, representing decreases of 2% and 15% compared to the same period last year.

Jiyoon Jeong, a researcher at NH Investment & Securities, said, "In Korea, sales are declining due to warm weather, a recession in the domestic apparel sector, and volume adjustments targeting daigong." He added, "Next year, we expect a recovery in domestic sales with a low first half and a strong second half."

He stated, "Regarding overseas markets, we anticipate same-store sales growth for MLB in China," and emphasized, "Discovery opened its first store in Changchun in November, and currently has four stores open, maintaining plans to open 100 stores next year."

He added, "F&F has a high sales proportion to China at 50% among domestic consumer goods, and considering the strong recovery in apparel consumption when the Chinese economy rebounds, the momentum remains valid." He emphasized, "Even considering the recent stock price increase, the price-to-earnings ratio (PER) is only 5.2 times, and given the earnings strength, we judge the decline to be excessive."

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