April 26, 2024

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[THE INVESTOR] Lock & Lock will post strong earnings in the first quarter and its profits will improve as well, said Eugene Investment and Securities on March 28, maintaining a “buy” recommendation and 31,000 won (US$29.01) target price.

Its revenue will rise 14.7 percent on-year to 106.8 billion won and operating profit by 15.4 percent to 12.4 billion won. Orders from a US home shopping channel have resumed in the first quarter brightening its earnings prospects, said analyst Lee Seon-hwa.

Streamlining its factory since October last year will advance its profitability, noted the analyst. It is cutting its personnel and selling idle assets at its factories in Vietnam and China. The operating profit ratio this year will reach 14.1 percent, up 1.7 percent from last year, Lee estimated.

In the first half, earnings will improve steadily and as it attempts to raise brand awareness in global markets, its value will be strengthened, she added.

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