[Click eStock] "Clio, Excellent Growth Potential and Financial Soundness"

[Asia Economy Reporter Kwon Jaehee] Meritz Securities on the 24th gave Clio a 'Buy' investment rating and set a target price of 24,000 KRW.

Clio's Q4 2022 revenue was 72.4 billion KRW, operating profit 5.2 billion KRW, and net profit 3.2 billion KRW (returning to profitability), meeting market expectations. Domestically, it performed well in its main channels H&B (Health & Beauty), duty-free, and online, while overseas it achieved good results in non-core regions such as the United States and Southeast Asia.

Domestic revenue was 49.3 billion KRW, a high growth of 33.3% compared to the same period last year. This is interpreted as being based on the strength of the main channels H&B and online. In the case of duty-free, a revenue deferral effect appeared.

Overseas revenue was 23.1 billion KRW, an increase of 3.2% during the same period. Japan recorded -32.2% due to intensified competition, and China recorded -41% due to weakened demand. On the other hand, the United States (101.5%) grew significantly due to strong Amazon sales and entry into Target, and Southeast Asia (208.2%) grew sharply due to the impact of reopening.

Hanuri, a researcher at Meritz Securities, said, "Domestically, structural external growth based on channel diversification and overseas expansion into new regions is expected," adding, "Considering excellent growth potential and financial soundness, a buy approach is recommended."