Kiwoom Securities announced on the 20th that it has lowered the target price and investment opinion for ASEMS to 8,500 KRW and Outperform (exceeding market returns), respectively, reflecting delays in the expansion timing of the new product lineup and downward revisions of forecasts.
Hyunjin Oh, a researcher at Kiwoom Securities, stated, "However, the current stock price is judged to be at a level where the price-to-earnings ratio (PER) based on 2024 is 9.7 times, which does not reflect expectations for new products," adding, "There is potential for an increase depending on the speed of core business recovery and whether new products are launched."
ASEMS's sales last year are expected to be 48.2 billion KRW, with an operating profit of 6 billion KRW. This is attributed to a decline in sales volume from sportswear companies such as Adidas and Nike due to the global economic slowdown, and sluggish sales caused by inventory adjustments. However, sales of fabric for automobile sunroofs grew to 11.2 billion KRW, accounting for more than 20% of total sales.
Researcher Hyunjin Oh said, "Due to weak consumer demand, global sports companies' investment capacity has decreased, delaying the company's plans to expand new products such as eco-friendly items," and added, "While demand recovery is expected to gradually increase customers' investment capacity in new products, considering uncertainties such as the global economy, it is still necessary to conservatively assess the timing and scale of new product sales."
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