[THE INVESTOR] Hyundai Home Shopping’s earnings will improve next year, said Hanwha Investment and Securities on Oct. 19 maintaining a “buy” recommendation and 159,000 won (US$139.77) target price.
Its operating profit in the third quarter will fall 10.9 percent on-year to 22.1 billion won, weighed down by slowing growth of mobile channel and struggling TV channel. When the acquisition of entire stake in Hanwha L&C wraps up by end-November, however, earnings of the construction materials heavyweight will be fully reflected from next year, said analyst Nam Seong-hyeon.
Hanwha L&C’s front industry continues to grow while utilizing the distribution network of Hyundai Group and initiating production of artificial marble will boost its earnings. Accordingly the home shopping company’s operating profit will leap 43 percent next year, forecast the analyst.
By Hwang You-mee (firstname.lastname@example.org)