April 20, 2024

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[THE INVESTOR] Lock & Lock continues to improve its performance in the aftermath of the THAAD row, said Hana Financial Investment on June 23, maintaining a “buy” recommendation and 20,000 won (US$17.58) target price. 

Its Chinese operations struggled temporarily but have been picking up fast, said analyst Park Jong-dae, estimating that its operating profit will stand at 14.4 billion won, up 0.4 percent on-year, and revenue 10.03 billion won, down 1.4 percent on-year, in the second quarter. 

Its earnings in the third quarter will rise as online sales channels are reopening and long-term sales contract has been signed, according the analyst. 

Its restructuring in China has been successful and the company is expanding into the US and Vietnam. Now is the right time to purchase its shares before it regains earnings momentum, noted Park, adding that Lock & Lock also has a high dividend policy. 

By Hwang You-mee (glamazon@heraldcorp.com)