[Click eStock] "Ecomarketing, Andar Men's Wear Sells Like Hotcakes" Target Price Up

[Asia Economy Reporter Ji Yeon-jin] Hana Securities announced on the 10th that it raised the target price of Eco Marketing from the previous 23,000 KRW to 25,000 KRW, citing record-breaking performance in the second quarter of this year due to strong sales of the yoga wear brand Andar.

Lee Ki-hoon, a researcher at Hana Securities, said, "We confirmed significant mid- to long-term growth potential at the bottom of earnings and stock prices, and the price-to-earnings ratio (PER) based on next year is only 10 times, making it a very attractive buying opportunity."

Sales in the second quarter of this year reached 108.2 billion KRW, a 74% increase compared to the same period last year, and operating profit recorded 21.2 billion KRW, up 140%. This is a record high performance exceeding the consensus (17.7 billion KRW). Andar's men's wear sales ratio rose to about 20%, achieving sales and operating profit of 54.1 billion KRW and 5.7 billion KRW, respectively. Considering the men's wear sales ratio (25%) and growth trend of the U.S. yoga wear brand Lululemon, expectations are rising for a high contribution to future performance. Daily&Co recorded an operating profit of 7.6 billion KRW, up 196%, due to new products and Andar's growth.

The researcher said, "The third quarter is Andar's seasonal off-season, but operating profit is expected to reach 16.3 billion KRW, an increase of about 81% compared to the previous year, and the fourth quarter is a seasonal peak with operating profit expected to increase by 52% to 21.9 billion KRW, setting a new record high operating profit." He added, "Although the product cycle has been short, causing short-term shocks followed by a reverse base effect that led to both earnings and valuation derating, Andar is expected to have a much larger and longer cycle than Ohora."