[Click e Stocks] "Golfzon, Time to Focus on Structural Growth... Target Price Up"

[Asia Economy Reporter Song Hwajeong] Shinhan Financial Investment raised the target price for Golfzon from 185,000 KRW to 218,000 KRW on the 22nd, citing visible mid- to long-term earnings growth driven by overseas market expansion. The investment rating was maintained at 'Buy.'

Researcher Son Ji-yeon of Shinhan Financial Investment stated, "Mid- to long-term earnings growth potential driven by overseas market expansion has become visible," adding, "Starting this year, operating profit is expected to enter the 100 billion KRW range, highlighting structural growth."

As overseas business expansion gains momentum, earnings growth is expected to continue. Shinhan Financial Investment forecasts Golfzon's overseas business revenue this year to reach 48.2 billion KRW, an 83.7% increase compared to the same period last year. The overseas revenue ratio is expected to rise by 5.0 percentage points to 16.0% of total sales next year. Researcher Son explained, "Japan and Vietnam will maintain stable performance next year, while the U.S. and China will lead overseas sales expansion." The U.S. and Japan operate both sales and store businesses, with a focus on sales. In the U.S., there are plans to open at least one new complex golf culture space store in the second half of next year, with expectations for expansion nationwide. Vietnam focuses on directly operated stores, currently operating 12, with plans to open about three more next year. China emphasizes sales business, currently operating stores in Beijing and Shenzhen, with plans to open an additional store in Shanghai early next year.

Strengthening integrated online and offline business is also positive. Golfzon is solidifying its platform services by launching golf community functions. Researcher Son said, "The promotional effect leading to store usage and the network effect enabling active communication among users are expected," adding, "This service fits well with the nature of leisure activities involving participation by multiple people."