[Click eStock] "Incross, Clear Recovery Trend in Second Half... Target Price '↓'"

Shinhan Investment Corp. forecasted on the 25th that although Incross's second-quarter results significantly missed expectations, a recovery trend is expected in the second half of the year. The investment rating was maintained at 'Buy,' but the target price was lowered to 17,000 KRW.

Incross recorded consolidated second-quarter sales of 12.2 billion KRW and operating profit of 3.4 billion KRW. Lee Byunghwa, a researcher at Shinhan Investment Corp., explained, "The second-quarter results significantly underperformed market expectations," adding, "Advertising expenditures from clients, including SK Group companies, have not yet recovered."

However, with the uncertainties and causes of performance deterioration in the first half disappearing, a rebound in performance is expected in the second half. Shinhan Investment Corp. projected that Incross's consolidated third-quarter sales will increase by 3.6% year-on-year to 14.4 billion KRW, while operating profit is expected to decrease by 2.1% to 5.9 billion KRW.

He emphasized, "Concerns about synergy and growth strategies with SK Group were resolved with the appointment of a new CEO in July," adding, "The media lab's volume from group companies has recovered, T Deal's advertising and marketing activities have normalized, and AI advertising is expected to gain momentum through collaboration with major group companies."