[Click eStock] "Jin Air, Demand Up · Oil Prices Down... Record High Profit Expected in 2Q"

Daishin Securities maintained its investment opinion of 'Buy' on Jin Air on the 16th, keeping the target price at 25,000 KRW.

Jin Air's Q2 2023 performance showed sales of 276.2 billion KRW and operating profit of 32.1 billion KRW, with sales increasing by 118.6% compared to the same period last year and operating profit turning positive. This exceeded consensus expectations and is expected to mark the highest quarterly profit in Jin Air's history. Accordingly, Jin Air's estimated full-year performance for this year is sales of 1.26 trillion KRW and operating profit of 211 billion KRW.

According to statistics from the Ministry of Land, Infrastructure and Transport for April and May, Jin Air's domestic supply and transportation increased by 10.6% and 13.2%, respectively, compared to Q1 of this year. International supply and transportation recorded -10.7% and 14.5%, respectively.

With the transition to endemic, international passenger demand continues to recover, and external factors such as the decline in international oil prices and the KRW-USD exchange rate are expected to reduce cost burdens.

Yang Ji-hwan, a researcher at Daishin Securities, stated, “Due to stock price adjustments caused by airlines' supply expansion and concerns over yield decline, the current stock price is only about five times the estimated 2023 earnings per share (EPS) of 3,000 KRW,” adding, “Considering the peak passenger season in Q3, the stock price is expected to continue its upward trend.”