[Click e-Stock] "Overseas Store Count Rises, But This Stock's Weak Performance Persists"

Eugene Investment & Securities has lowered its target price for Golfzon from 79,000 won to 70,000 won. The company maintained its buy rating.

On May 7, research analyst Park Jongseon of Eugene Investment & Securities stated, "The revision is based on this year's expected earnings per share (EPS) of 7,629 won, applying a target multiple of 9.7 times the average price-earnings ratio (PER) of domestic peer groups."

The first quarter results this year were weak. On a consolidated basis, first-quarter revenue stood at 111.8 billion won, and operating profit at 14.1 billion won, down 13.9% and 47.4% year-on-year, respectively. Analyst Park explained, "Operating profit fell significantly short of the market consensus of 21.2 billion won," and cited decreased revenue in both domestic franchise and non-franchise businesses as well as the GDR segment, along with increased costs due to strengthened overseas sales and marketing activities, as the reasons.

However, the continued growth in overseas business revenue for five consecutive quarters is a positive sign. Analyst Park noted, "The number of global stores increased from 3,534 in the first quarter of last year to 4,207 in the first quarter of this year," adding, "Revenue has risen in the United States due to increased demand for new products and in Japan as a result of adjustments in sales policies and strengthened sales activities."

The weak performance is expected to continue in the second quarter as well. Analyst Park projected, "Second-quarter revenue is expected to reach 116.5 billion won, and operating profit 14.1 billion won, down 3.7% and 28.8% year-on-year, respectively," but added, "The overseas business is still expected to maintain its growth trajectory."

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