[Asia Economy Reporter Park Jihwan] Daishin Securities evaluated that despite the stock price of Cuckoo Homesys soaring sharply in the short term due to earnings momentum on the 21st, it still retains valuation attractiveness. Accordingly, the investment opinion 'Buy' was maintained, and the target price was raised by 9% to 59,000 KRW.
Researcher Inayeon from Daishin Securities said, "Since the second half of last year, the stock price has fluctuated between 37,000 KRW and 47,000 KRW without finding a clear rebound point," adding, "However, after recording an earnings surprise in the first quarter, the stock price surged 25% in the short term." Although there is fatigue from the short-term surge, the stock price is highly likely to follow the upward trend due to the resolution of Coway's undervaluation phase.
The earnings outlook is also bright. First-quarter sales and operating profit were 230.5 billion KRW and 61.5 billion KRW respectively, increasing by 39.1% and 125.2% year-on-year, significantly exceeding market expectations.
In the domestic market, sales increased by 43.0% to 145 billion KRW, and the operating profit margin recorded 20.4%. Researcher Inayeon stated, "Financial lease and lump-sum sales nearly doubled," and "The proportion of financial lease in sales rose by about 10 percentage points year-on-year to approximately 50%."
In the overseas sector, sales also increased by 32.9% year-on-year to 85.4 billion KRW. Malaysia, accounting for about 95% of overseas sales, recorded sales of 81.1 billion KRW, a 32.5% increase compared to a year ago. The operating profit margin was 29.2%. The researcher said, "The business situation in Malaysia was better in March than in January and February," and "The trend from March seems to be continuing into the second quarter."
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