[Click eStock] "Chris F&C Benefits from Resumption of Overseas Golf Travel"

[Asia Economy Reporter Ji Yeon-jin] Eugene Investment & Securities newly issued a target price of 70,000 KRW and a buy rating for Chris F&C on the 21st, stating that with the start of overseas travel, the demand for golf wear purchases by overseas golf travelers going abroad to play golf will increase.

Researcher Lee Hae-ni of Eugene Investment & Securities said, "Golfers usually purchase golf wear before going for a round, so an increase in demand due to overseas golf travel is expected," adding, "South Korea lifted quarantine restrictions for arrivals from March 22, and although it will take some time for the number of arrivals and departures to return to normal levels, overseas golf demand will increase even before that. Even if overseas travel normalizes, the influx of golf population and the lock-up of existing golfers will continue."

Chris F&C's sales this year are estimated to increase by 17.5% year-on-year to 441.7 billion KRW, and operating profit is expected to rise by 28.5% to 111.9 billion KRW. This reflects the revival of the golf industry and the golf wear industry. Steady growth is expected across its own brands (Ping, Phantom, Parigates, Master Bunny, St. Andrews).

The researcher said, "Parigates and Ping have already joined the 100 billion KRW sales brand group," adding, "This is comparable to global golf wear brands such as Callaway, Titleist, and PXG, and they are competing with recently rapidly rising new brands (Mark & Lona, G/FORE) through Master Bunny and St. Andrews, which target young golfers." He emphasized, "Not only does the company hold the No. 1 market share in the domestic golf wear market (based on combined brands), but it also owns multiple brands that compete with global brands," stating, "It is a company that will grow along with the popularization of the golf industry."