[Click e-Stock] "Dalba Global: Share Price Correction Is a Buying Opportunity... Target Price Raised"

by Song Hwajung

Published 11 Aug.2025 07:37(KST)

Target Price Raised by 23.9% Compared to Previous Estimate

On the 23rd, Korea Investment & Securities stated that the recent share price adjustment of Dalba Global should be seen as a buying opportunity, raising its target price from 2.3 million won to 2.85 million won. The investment opinion was maintained as 'Buy'.

Kim Myungjoo, a researcher at Korea Investment & Securities, said, "Although we have slightly lowered our earnings estimates due to disappointing domestic sales trends and a greater-than-expected increase in certain SG&A accounts, we have raised our valuation to reflect strong overseas sales growth. Even after adjusting our estimates, considering the still high valuation appeal and robust overseas sales momentum, we recommend using the share price correction following the disappointing second-quarter results this year as a buying opportunity."

In the second quarter, Dalba Global recorded consolidated sales of 128.4 billion won, up 73.8% year-on-year, and operating profit of 29.2 billion won, up 66.0%. Operating profit fell short of market expectations by 19.3%. Kim explained, "The main reasons for the shortfall were the delay in the expected shipment of Russian B2B (business-to-business) orders in the second quarter (about 6 billion won), and additional VAT payments related to a regular tax audit, both of which negatively impacted operating profit. Excluding these factors, operating profit would have met market expectations. Despite the delay in B2B order shipments, Russian sales increased by 40% year-on-year, and regions with a low base such as Japan (366.3%), North America (140%), and Europe (507.9%) showed a significant increase in sales."

There is an outlook that the operating margin of overseas business will improve significantly next year. Kim stated, "We estimate that the company did not achieve surprise earnings because the proportion of highly profitable domestic sales declined compared to both the previous year and previous quarter. Fortunately, as the offline channel expansion accelerates next year, the operating margin of Dalba Global's overseas business is expected to improve significantly year-on-year. As long as the domestic sales proportion within total sales does not decrease drastically amid strong overseas sales growth next year, there will be no overall margin decline for the company," he explained.