[Asia Economy Reporter Jang Hyowon] As COVID-19 vaccines are gradually distributed, people's consumption patterns are changing. Accordingly, there is an analysis that the first-quarter earnings rebound of companies related to consumer goods in sectors such as department stores, cosmetics, clothing, and shoes is expected.
According to SK Securities on the 14th, since COVID-19 began to spread in earnest in March last year, the consumption share in fields such as entertainment, culture, lodging, education, clothing, and shoes significantly decreased. The fourth quarter of last year, when the daily new confirmed cases exceeded 1,000, also confirmed a decrease in consumption share in the same fields.
However, after passing the third wave and entering the new year, the daily new confirmed cases dropped to around 300 to 400, which is analyzed to have led to changes in consumption patterns.
Na Seungdoo, a researcher at SK Securities, said, “In January this year, the online shopping transaction amount for culture and leisure services rose by more than 150% compared to the same month last year, and in February, it showed an increase of over 120%. Travel and transportation services also rose by more than 15% in February, and shoes and bags showed a rebound of about 5%.”
This is explained as a reflection of consumers' strong willingness to increase outdoor activities.
Researcher Na added, “The most important point is that these changes in consumption patterns show signs of leading to the earnings of companies related to consumer goods in the first quarter.” He analyzed, “Based on the consensus of operating profit by sector for the first half of this year, the sector expected to show the highest growth rate compared to the same period last year is the consumer goods sector related to the economy.”
He specifically anticipated the largest rebound in the education services sector and forecasted that most sectors, including department stores and general stores, will record a significant earnings rebound.
He added, “Remembering that stock prices are highly correlated with the slope of corporate profit growth rates, it is time to increase interest in companies in the consumer goods sector related to the economy.”
Along with this, SK Securities analyzed SJ Group, Deutsch Motors, Lotte Tour Development, VT GMP, Hojun Industry, MFM Korea, and Chris F&C.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
