[Click e-Stock] "Cuckoo Holdings Expected to Achieve Stable Growth Again This Year"

Cuckoo Holdings is expected to achieve stable growth this year. This outlook is supported by the growth of sales from products other than electric rice cookers, the recovery of sales in China despite a slowdown in sales growth in the United States, and increasing sales in Southeast Asia.

On June 16, NH Investment & Securities raised its target price for Cuckoo Holdings by 27.0% to 40,000 won and maintained its "Buy" investment rating, citing these factors. The previous trading day's closing price was 30,800 won.

The most significant factor is sales growth. NH Investment & Securities estimated Cuckoo Holdings' consolidated results for the second quarter of this year at 199.8 billion won in revenue and 19 billion won in operating profit. These figures represent increases of 8.9% and 5.9%, respectively, compared to the same period last year.

Domestic sales are expected to grow by 7.8% to 155.5 billion won. The analysis attributes the continued growth in sales of products other than electric rice cookers to efforts at product diversification, such as the launch of new food waste disposers.

Overseas sales are estimated to increase by 13.0% year-on-year to 44.3 billion won. In China, sales of electric rice cookers are recovering, and with the benefit of the base effect, sales are expected to grow by about 16% year-on-year to reach 19 billion won. In the United States, sales growth is projected to slow due to the impact of tariffs and other factors. Nevertheless, sales are still expected to increase by about 14% compared to the same period last year. In particular, regional diversification centered on Southeast Asia is anticipated, especially after the recent signing of a memorandum of understanding (MOU) with a local distributor in Thailand.

There are also expectations for shareholder returns. First, Cuckoo Homesys' Malaysian subsidiary is scheduled to be listed locally this month. It is expected that a portion of the existing 62.5% stake will be monetized through the sale of old shares and used as a resource for dividends. In addition, efforts to revitalize the capital market, such as the government's push for amendments to the Commercial Act, are expected to reduce the holding company discount.

Lee Seungyoung, a researcher at NH Investment & Securities, explained, "As sales of other products continue to grow mainly in Korea, dependence on electric rice cookers will decrease," adding, "The proportion of sales from other products is expected to expand from 19% in 2023 to 29% this year."

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