April 27, 2024

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Its operating profit in the first quarter will leap 69.7 percent on-year to 83.0 billion won, about 10 percent higher than estimated, thanks to the improved profits from both Korea and US operations, said analyst Park Heui-jin.

Its US branch suffered more than 3 billion won operating loss in the first quarter last year due to the inventory loss following the bankruptcy of a distribution channel, but will reverse to black in this year, explained the analyst.

In Korea, its revenue will jump more than 20 percent in the period and operating profit will reach 3.9 billion won and upward momentum will be maintained all year, forecast the analyst. 

According to Park the domestic sector will keep up the virtuous cycle. Yearly revenue and operating profit here will rise 14.6 percent and 1,035 percent, respectively. Its US operation’s operating profit this year will also rise to 18.8 billion won, approximately 8 billion won higher than last year. 

In addition, the value of its stake in affiliates will rise, and there is ample room for its stock price to rise further, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com) Fila Korea’s stock price can continue to rise as its earnings improve this year, said Shinhan Investment on April 6, maintaining a “ buy” recommendation and raising the target price to 150,000 won (US$140.96) from 120,000 won.