[Special Stock] JVM Rises on Forecast of Record High Operating Profit This Year

[Asia Economy Reporter Lee Seon-ae] JVM's stock price has been on the rise since the early trading hours on the 11th. This is interpreted as due to expectations of achieving record-high performance.

As of 9:33 AM on the day, JVM's stock price was trading at 15,700 KRW, up 3.63%. It showed a strong upward trend, rising to 16,400 KRW in the early session.

Ebest Investment & Securities forecasted that JVM will achieve record-high performance this year, supported by increased exports and price hikes in domestic equipment sales. Accordingly, they maintained a buy rating and a target price of 24,000 KRW. JVM's estimated sales for Q1 this year are 29.2 billion KRW, and operating profit is 3.7 billion KRW. This represents increases of 22% and 131%, respectively, compared to the same period last year, and is expected to exceed market consensus.

Annual sales and operating profit for this year are expected to increase by 16% and 53%, respectively, to 134.1 billion KRW and 19.1 billion KRW compared to the previous year. If realized, this would be the largest operating profit on record.

Researcher Jo Eun-ae of Ebest Investment & Securities stated, “Since COVID-19, overseas markets have expanded expectations and needs for the introduction of automated dispensing systems due to labor shortages, and domestically, the number of dispensing cases has rapidly increased recently. Domestic equipment prices reflect price increases due to product renewals, and overseas equipment is also scheduled to implement this in the first half of the year.”