[THE INVESTOR] Daesang’s earnings improvement will continue next year, said KB Investment and Securities on Dec. 14, maintaining a “buy” recommendation and raising the target price to 33,000 won (US$30.38) from 30,000 won.
The upcycle began from the third quarter and will be maintained, according to analyst Park Ae-ran who estimated that revenue and operating profit will rise 6 percent and 20 percent, respectively, to 3.17 trillion won and 130.0 billion won.
Investors should in particular pay attention to the earnings improvement of its major subsidiaries both at home and overseas, pointed out the analyst.
Bolstered by growth in size and improved financial structure, operating loss of Daesang Bestco will shrink to 8.1 billion won next year from this year’s 12.9 billion won. Revenue of PT Miwon Indonesia will hike 15.2 percent on-year to 185.0 billion won, she estimated.
By Hwang You-mee (firstname.lastname@example.org)